udit sharma (Company Secretary) (2303 Points)
24 December 2010Hi...
In case of unlisted Indian Company, shares are issued and executed in the state of Gujarat. Now, whether the Stamp Duty on issue of share certificates is to be paid on face value of shares or issue price(FV+Premium) in the state of Gujarat? Pls. help its really urgent....
God Bless
Udit Sharma
Jaideep
(Service)
(1368 Points)
Replied 24 December 2010
Hi
Stamp duty is to payable on the value of the security. In case where the shares are issued on premium, value will be the issue price.
This interpretation is drwan from Indian Stamp Act, right now i am not having exact source. If i get I will paste it immediately.
Regards
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17858 Points)
Replied 25 December 2010
Stamp duty on share certificate:- Re.1/- stamp for every Rs. 1000 (including premium).
Nidhi Thakkar
(CS Trainee.)
(59 Points)
Replied 03 January 2011
Hi.... whether stamp duty is to be paid on transfer of shares of private ltd company...?????? Please its urgent...
Thanks
Regards
Nidhi Thakkar
CS GK Murty
(Company Secretary)
(225 Points)
Replied 03 January 2011
Practically, it is not happening in case of private limited company. If the company does insist, then stamp duty in the form of share transfer stamps as applicable i.e. 0.20% is to be affixed.
CS GKMurty
Charu
(nil)
(122 Points)
Replied 03 January 2011
Dear Nidhi,
Stamp duty is payable on all share transfers, irrespective of fact whether the company is Public Ltd. or Pvt. Ltd. Presently, it is 0.25% of consideration amount. However, no need to pay stamp duty in case of transmission of shares.
CS GK Murty
(Company Secretary)
(225 Points)
Replied 03 January 2011
Agreed with Charu. However, though as per statute, it is applicable for both pvt and public ltds, practically form 7B is duly executed between transferor and transferee without affixing any stamps in private ltd cos.
Charu
(nil)
(122 Points)
Replied 04 January 2011
| Originally posted by : CS GK Murty | ||
 |
Agreed with Charu. However, though as per statute, it is applicable for both pvt and public ltds, practically form 7B is duly executed between transferor and transferee without affixing any stamps in private ltd cos. |
 |
In my view, The Companies Act,1956 has not given any such exemption to private companies. I think such incidence is a case of duty evasion hich can be prosecuted.
Members suggetions are invited.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17858 Points)
Replied 04 January 2011
"Stamp duty is payable on all share transfers, irrespective of fact whether the company is Public Ltd. or Pvt. Ltd. Presently, it is 0.25% of consideration amount. However, no need to pay stamp duty in case of transmission of shares."
Agree with charu....
SEBI HAS DIRECTED THAT COPY OF PAN CARD IN NECESSARY IN CASE OF EVERY TRANSFER OR TRANSMISSION.
Nidhi Thakkar
(CS Trainee.)
(59 Points)
Replied 04 January 2011
Stamp duty is to be paid in the same state or different state is allowed????
Regards
Nidhi Thakkar
Vikash
(Manager)
(28 Points)
Replied 10 January 2011
Hi,
I am thankful to all who take time in sharing their views and experience to help others.
I also have some query. I recently formed a Pvt. Ltd. company and had few queries regarding appointment of Managing Director and Issue of share certificates.
1. My company's Article empowers board of directors to appoint Managing director. We have already done with first board meeting and appointed one of our directors as the Managing Director of our company. Do we require filing form 23 and 32 with ROC? or only board resolution is enough.
2. We registered company with an Authorized Capital of Rs. 5,00,000 and Paid-up Capital of Rs. 1,70,000. There are 3 members and subscribers to MOA and AOA for this paid-up capital. I want to issue share certificates for this already allotted and subscribed capital. Please tell me the process for that. I also want to know do we require to pay stamp duty on this initially subscribed capital for issuing share certificates. Some experts suggested us that we do not need to pay any kind of stamp duty regarding there shares and for issuing further shares till authorized capital Rs. 5,00,000 for issuing shares and stamp duty would be paid only if transfer of shares and increase in authorized capital takes place.
3. Please also tell me name of any source or stationary store in North Delhi, or CP for purchasing all statuary stationary and registers. Also tell me what all stationary we require to maintain for fulfilling all compliances and legal requirements.
Thanks
Vikash
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 11 January 2011
1) Form 23 and 25C need to be filed for appointment of MD.
2) According to me, Stamp duty is payable on issue of Share Certificates including the allotment towards initial subscripttion amount.
Neha Gupta
(PCS)
(377 Points)
Replied 11 January 2011
Yes, you have to pay stamp duty i.e. by way of affixing the Rs. 1 revenue stamp for every 1000 shares on Share Certificate. and completely agreed with Jayashree you have to file form 25C and 32 for appointment of MD.
Vikash
(Manager)
(28 Points)
Replied 14 January 2011
Thanks a lot
Please advice me on How can I pay stamp duty on share certificates issued to subscribers to MOA/AOA. As per the information I gathered, it can be paid by either through affixing revenue stamps or by franking the certificates or through Revenue collector.
Which one is right and also advice the proper way.
Live Course on EPF & ESI Act - Mastercourse(With Govt Certificate)
CAclubindia
