Stamp duty on share alottment

Others 16620 views 4 replies

CS MOHIT SALUJA

PRACTICING CS Jalandhar 9914558709

5155 Points Joined April 2010

Dear Friends,

Now a days we come to know that collector of stamps in Delhi and other states are issuing notices to companies for default in payment of stamp duty in share certificate on allotment of shares. Some of you must have come across the issue recently. I have some queries in this respect can any one please clarify.

1. WE PAY STAMP DUTY WHILE INCORPORATING A COMPANY AND ALSO WHILE INCREASING THE AUTHORISED CAPITAL. Then what else is the stamp duty payable on allotment.

2. If yes it is payable what is the rate and how the stamping is done i mean is it a self adhesive stamps or embossed on the share certificate and the systems woks.

3.What is the option for the companies who have violated this norm.
4. Suppose a company sou moto wants to comply with the stamp duty payment for past as well as future cases what should it do. which office in Delhi should be contacted.

5. I understand that in Haryana there is a stamp duty of Rs 10/- irrespective of quantum/amunt of shars capital issued. SO some company are showing the palce of allotment/board meeting in Haryana is it valid.

6. In case any notice has been received what reply should be given at the first instance.

Looking forward to plenty of responses on this matter.

Please also provide the procedure of paying the stamp duty.

Thanks & Regards

Replies (4)

valji

Accounts manager-MBA

2150 Points Joined July 2008

STAMP DUTY IS PAYABLE ON SHARE ALLOTMENT @ .1%

YOU HAVE TO PAY WHILE ISSUED SHARE CERTIFICATE TO SHARE HOLDER

STATMP DUTY ON AUTHORIZED CAPITAL DIFFREANT FROM ABOVE STAMP DUTY

FRANKING ON SHARE CERTIFICTAE BY AGEANT

CONSULT YOUR C.S

khyati

28 Points Joined January 2012

As far I knw, Duty on Share certificate is a subject matter of State Govt.There are different rates of duties on share certificate,depends on state to state.In delhi its 10paisa for evry 1000 rupee of value of shares.Howevr in haryana its Rs.1 only,irrespective of value of shares.Thus, In this regards,most of the companies in Delhi show their Board Meeting in Haryana rather than Delhi to avoid Duty.

The appropriate way to pay stampduty is "Franking" of share certificate.Most of The Companies use revenue stamp but its not valid.So try to avoid it.

Mohammed

CS Mcom LLB

857 Points Joined September 2009

RATE OF STAMP DUTY ON SHARE CERTIFICATES

States Rate of duty

* Andhra Pradesh - Thirty Paise per certificate

* Arunachal Pradesh - Rs. 5.00 per certificate

* Haryana - Forty Naye paise per certificate

* Himachal Pradesh- Forty Paise per certificate

* Karnataka - One rupee for every one thousand rupees or a part

thereof of the value of the share, scrip or stock.

* Kerala - Fifty Paise per certificate.

* Maharashtra- Re. 1 for every Rs. 1,000 or part

* Manipur - AS of Assam

* Nagaland - Forty Five Paise per certificate

* Orissa - One rupee per certificate

* Punjab - Ten Rupees [40 n.p. under act 34 of 1960 and 25 n.p.

prior thereto

* Rajasthan One rupee for every one thousand or a part thereof of

the value of the shares, scrip or stock

* Tripura - As of Assam

* Uttar Pradesh - One Rupee per certificate

1. N C T of Delhi - One rupee for every one thousand or a part thereof

of the value of the shares, scrip or stock