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Stamp duty on share alottment


CS MOHIT SALUJA (PRACTICING CS Jalandhar 9914558709)     04 April 2012

CS MOHIT SALUJA
PRACTICING CS Jalandhar 9914558709 
 198 likes  4638 points

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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

 

avater

valji (Accounts manager-MBA)     04 April 2012

valji
Accounts manager-MBA 
 247 likes  2148 points

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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 (CS)     06 April 2012

khyati
CS 
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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.

avater

Mohammed (CS, Mcom, LLB)     07 April 2012

Mohammed
CS Mcom LLB 
 85 likes  832 points

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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

avater

Mohammed (CS, Mcom, LLB)     07 April 2012

Mohammed
CS Mcom LLB 
 85 likes  832 points

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MP-Re.1 per Rs.1000 on total value of shares including premium.

Rajasthan: One rupee for every one thousand on total value of shares including premium or a part thereof of

TAMIL NADU RS.1 PER CERTIFICATE (IRRESPECTIVE OF THE VALUE OR NUMBER OF SHARES COVERED)


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