Stamp duty on Reissue of Share Certificates after Split

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Guest

Whether in the case of public or private company, Revenue Stamp Duty, on reissue of share certificates after receipt of request of split from the share holder, is required to be paid again ?

Please explain.

Regards

Neha

Replies (10)

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Posted on 13 June 2009

Yes. It is required to be paid again.

Regards

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Posted on 15 June 2009

And it is required to be paid @ Re.1/- for each Rs.1,000/- including premium (i.e. issue price)

Guest

If shares of Rs. 1.00 lacs has been issued at a premium of Rs. 1.00 Lacs.

Than Rs. 1.00 for Rs.1000 shall be on Rs. 1.00 lacs (FACE VALUE) or Rs. 2.00 lacs (FACE VALUE + PREMIUM) ?

Guest

Dear Ankur Sir,

IT IS MENTIONED IN THE RAJASHTAN STAMP ACT 1998:

Stamp Duty on Certificate or other document, exercising the right or title of the holder thereof or any other person, either to any shares, scrip or stock or any incorporated company or other body corporate or to become proprietor of shares, scrip or stock in or of any such company or body is : One rupee for every one thousand rupees or a part thereof, of the face value, of the Shares,Scrip or Stock.

Please Clarify whether stamp duty is paid on face value of shares or inclusive of premium amount ?

Ajay Mishra

Company Secretary

74352 Points Posted on 15 June 2009

Dear Ms. Neha

If u read Stamp Act, it generally says one rupees for every one thousand or part thereof of the value of the share, it means share price will also include dividend or discount for duty payment.

Regards

Guest

Dear Ajay Sir,

Please Check Rajasthan Stamp act 1998 in this regard on this link :

https://india.gov.in/allimpfrms/allacts/2146.pdf

Page 93 point no. 18

Kind Regards/ Neha

ACS_RR

Service

58 Points Posted on 15 June 2009

Bombay Stamp Act clearly says that the stamp duty is required to be paid on the value of the Shares and this includes Premium. But the Rajasthan act only mentions that the Stamp Duty is applicable only on face value and if the Rajasthan Act is aplicable to you..then u consider the same for Stamping purposes.

vivek

751 Points Posted on 28 May 2010

Payment of revenue is the subject matter of state list therefore payment must be mde as per the state act. Item no. 18 talks about face value of Shares/scrip/stock.

Regards,

Vivek

CA Seema Pasari

Audit Associates

21 Points Posted on 13 January 2011

hi friends.

I want to know why it is required to pay stamp duty again on spliting of share certificate since i have already paid at the time of issue and under which provision of Bombay Stamp Act, it is required to pay stamp duty on re-issue of share certificate at the time of spliting of share certificates.

regards,

seema

ars

445 Points Posted on 14 January 2011

I have seen splitted certificates mentioning " stamp duty paid on original cert. no. ***** "

request to clarify and tell where it has been mentioned for payment of stamp duty on the splitted share certificates. what could be the case of consolidation of certificates?