Stamp duty on partly paid share certificate

Dear Members

I have a query.

'A' Company has made full allotment of 5 lakh Shares to 'B'Company but the amount  is partly paid up (Rs.10/- face value - Paid up rs.5/- & balance Rs.5/- to be called in future) .

The Stamp duty on share certificate be paid in this case at one go or twice as they are partly paid ??

This is for state of karnataka. Is there any specific provisions under the act which states that stamp duty can be paid partly??

Please advice 

regards

Santosh

Replies (5)

Santosh- Stamp Duty generally depends on consideration amount and no matter whether the full consideration is paid at one go or in installment. In case of conveyance too, the stamp duty is calculated and paid on the agreed total consideration amount no matter whether full consideration is paid upfront. So as per me, Stamp duty to be paid on the face value (Rs 10 per share) and not on 5 now and 5 after collection.

Nowhere it is mentioned and this is my personal view. i have not come acoss such situation so did not dig the same too much. Others view welcome

 

I think you should pay stamp duty on full face value not on partly paid up face value. Because when another call will

be made in future to make partly paid up shares into fully paid up than how will you pay stamp duty I mean shares

has already been alloted..

 

Stamp duty will be paid on face value even for partly paid up shares.

Since stamp duty is payable as per state law, so, Check with local lawyer or purchase book of stamp act to know.

stamp duty is payable for issue of share certificates and not for allotment hence duty is payable on face value of share which is maximum consideration for a share certificate and duty is subject to state law

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