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Stamp duty on share transfer in delhi

24 July 2009

In case of transfer of shares of pvt ltd. company registered in Delhi, Stamp duty payable is 25 paise per hundred rupees of the value of shares.

In this case, please tell Value of shares means face value of Share i.e. Rs. 10/- or the price at which shares are transferred i.e. Rs. 50.? Also tell who will pay the stamp duty?

Please tell me some source also where the clarification related to this is given.

Regards

Hinna Garg

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16 Replies

Muralidharan (Self Employed) (1034 Points)
Replied 24 July 2009

dear hanna garg

share transfer stamp has to be affixed on the consideration amount paid by the transferee to the transferor. If the face value is Rs.10/- per share and if the sale value is Rs.50/- per share then you need to calculate and pay stamp duty on Rs.50/- per share. Further the share trasnfer stamps has to be borne and paid by the transferee.

with regards

Muralidharan

Suman Khurana (ACS) (209 Points)
Replied 25 July 2009

Under Indian Stamp Act, Stamp Duty is written as 25 paisa for per hundered rupees or part thereof of the value of shares. But nowhere it is mentioned what value of shares means i.e. face value or consideration.

From where, i can get this clarification?

ITS URGENT

Regards

Hinna Garg

poonam verma (Company Secretary) (191 Points)
Replied 01 August 2009

Originally posted by :Hinna Garg

Value of share means the consideration.

Hi

Under Indian Stamp Act, Stamp Duty is written as 25 paisa for per hundered rupees or part thereof of the value of shares. But nowhere it is mentioned what value of shares means i.e. face value or consideration.

From where, i can get this clarification?
ITS URGENT
Regards
Hinna Garg

1 Like

Mamta Batra (CS) (376 Points)
Replied 01 August 2009

Find the attached file for rate of stamp duty in Delhi

Attached File : 41 rate of stamp duty.pdf downloaded: 3238 times

Mobango (Counsel) (21 Points)
Replied 03 September 2011

Stamp Duty in Delhi says:

Transfer (whether with or without consideration)

(a) of shares in an incorporated Company or other body corporate: Seventy-five paise for every hundered rupees or part thereof of the value of the share

Presumably therefore, consideration is of no consequence. It is the value of shares that is material.

vikash kumar pandey (cs) (23 Points)
Replied 04 April 2012

Please help me out. i have transfer 5000 shares of Rs. 10, what should be stamp duty in that case. company is register in delhi and it is a private company,

CS Iti Goyal (company secretary) (56 Points)
Replied 11 April 2012

Hi Vikash, according to stamp duty act as applicable in delhi, The prevailing rate is 25 paise per 100 rupees or part thereof of the value of share. here value of share means the value on which share is transfered i.e, fair market value and not face value.

hence stamp duty payable by you would be rupees 125

0.25/100*50000(5000*10)

Regards

cs Iti Goyal

1 Like

vikash kumar pandey (cs) (23 Points)
Replied 21 June 2012

thanx bro

aashik rai (nthng) (50 Points)
Replied 14 January 2015

if we are transferring only one share of rs 10 then stamp duty shall be payable .25 paise but stamp paper of .25 paisa can not be made so how much amount of stamp duty shall be payable in this case...its urgent please reply as soon as possible...........

CS Iti Goyal (company secretary) (56 Points)
Replied 16 January 2015

Hi,

Even if your stamp duty is turing out to be Rupees 0.25 Paisa, you have to purchase share transfer stamp of Ruppes one, as it is the minimum denomination for Share transfer stamp.

You may pay higher duty for which you are liable, but in any case youy canot pay lesser duty. so purchase one Share transfer stamp of Rupees one.

CS Iti Goyal (company secretary) (56 Points)
Replied 16 January 2015

Hi,

Even if your stamp duty is turing out to be Rupees 0.25 Paisa, you have to purchase share transfer stamp of Ruppes one, as it is the minimum denomination for Share transfer stamp.

You may pay higher duty for which you are liable, but in any case youy canot pay lesser duty. so purchase one Share transfer stamp of Rupees one.

aishwarya (student) (23 Points)
Replied 12 April 2016

Can you please tell me the source from which you are qouting such stamp duty to be payable? Any judicial proceeding or provision of some act that provides the same?

aishwarya (student) (23 Points)
Replied 12 April 2016

Can you please tell me the source from which you are qouting such stamp duty to be payable? Any judicial proceeding or provision of some act that provides the same?

aishwarya (student) (23 Points)
Replied 12 April 2016

Can you please tell me the source from which you are qouting such stamp duty to be payable? Any judicial proceeding or provision of some act that provides the same?