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Stamp duty on Share certf. in Delhi

20 April 2010

Hi

Our co's registered office is situated in New Delhi. we issued share certificates and stamp duty on same is paid by affixing revenue stamp of Re. 1 on each share certificate.

Now Auditors are objecting on the same.

According to them stamp duty is Re. 1 for Rs.1000 of the value of shares (value includes premium). Further it is to be made by presenting the share certificate before the concerned authorities who will do frnaking on share certificate.

Now please tell the solution how to deal with this issue?

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10 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 20 April 2010

Hi,

Yes objection by auditors is correct.

The rate of stamp duty on the issue of Shares in new Delhi is 0.1% i.e. Rs. 1 on face value of Rs. 1000/- of the consideration including the amount of premium.

Can you can show your BM for allotment in UP or Haryana where the stamp duty is Rs. 1 irrespective of amount involved? This is the general practice followed by companies.

Another option would be to present the share certificate to the appropriate authority subject to the provisions of section 113 (Time limit for issue of share certificate). Further tell me the date of allotment to suggest something keeping in view the provisions of section 113 of companies act, 1956.

Best Regards

1 Like

Suman Khurana (ACS) (209 Points)
Replied 21 April 2010

In case of transfer of shares, how stamp duty is to be paid?

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 21 April 2010

Rate of Stamp duty

Stamp duty for transfer of shares is 25 paise for every Rs. 100 or part thereof of the value of shares as per Notification No. SO 130(E), dated 28-01-2004 issued by the Ministry of Finance, Department of Revenue, New Delhi.

You may pay the stamp duty by pasting the stamps on the back side of share transfer deed. There is a specified place in share transfer deed for pasting of stamps.

If number of stamps are too much than you may paste them on a plain paper and attach the plain paper with share transfer deed. Proper cancellation of stamps is mandatory.

Regards

1 Like

anshi srivastava (cs trainee) (21 Points)
Replied 22 April 2010

hi...

Can anyone please tell me that whether the stamp duty on the issue of share certificates is paid before mentioning the date on them, and also the procedure for the stamping of share certificates

Looking for a quick reply.

Thanks

Anshi Srivastava

(Guest)

The stamp tickets shall be affixed on the Share Certificate, in the Left Side Bottom of the Certificate, Which area is Blank.

The Dtae first Should be entered and then Stamp Tickets shall be Placed.

Logic behind the same: The date should be first entered, to Crystalize the Stamp Duty Rate.

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Roopa (Accounts Officer) (38 Points)
Replied 23 June 2010

Hi, Can any one quote the section which states that the Director of Private Limited Company can hold office in more than one company...?

Khushboo Maheshwari (Company Secretary) (548 Points)
Replied 23 June 2010

Originally posted by : Ankur Garg
	Hi, Yes objection by auditors is correct. The rate of stamp duty on the issue of Shares in new Delhi is 0.1% i.e. Rs. 1 on face value of Rs. 1000/- of the consideration including the amount of premium. Can you can show your BM for allotment in UP or Haryana where the stamp duty is Rs. 1 irrespective of amount involved? This is the general practice followed by companies. Another option would be to present the share certificate to the appropriate authority subject to the provisions of section 113 (Time limit for issue of share certificate). Further tell me the date of allotment to suggest something keeping in view the provisions of section 113 of companies act, 1956. Best Regards

Ankur Sir - How can showing a BM for allotment in UP or Haryana affect the rate of stamp duty. Stamp duty is paid acc. to rules of the state in which in company is incorporated..........please clarify