Stamp duty on shares

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when a company is issuing its shares in demat form  whether it is required to pay stamp duty and if yes then at what rate...?

Replies (7)

I also want to know the rate of stamp duty in case of fresh issue..

thanks in advance...

 

 

Dear Rachit,

 

On share transfer, the rate of stamp duty is Rs.0.25 on every Rs.100 consideration...

here are some discussion on this matter..

/forum/re-form-for-transfer-of-shares-62923.asp

 

Adarsh

Dear Adarsh, In case of issue of new share certificate the rate of stamp duty is, w.e.f. 01.05.1994, Re. 1 for every one thousand including premium. (i.e. issue value).

In case of share transfer the stamp duty is 0.25 per Rs.100/-( i.e. per 100 of transfer value and not the face value).

Thanks for info Ankur Ji....

Yes, the issuer(the company) has to pay the relevant stamp duty as applicable irrespective of whether it is issued in either physical of demat mode. This is because in the Companies Register of members the respective Depository i.e. NSDL or CDSL shall be the registered holder. It will have to issue a share certificate in the name of NSDL/ CDSL on which it will have to pay the stamp Duty. Stamp duty is payable @ 0.10% on the value of shares. So you will have to pay the stamp duty on the value of shares which the NSDL/ CDSL is holding. Kindly go through the procedure of Dematerialization. As per Finance At, 2000, stamp duty is waived only for transfer of shares within Depositories. Hope this information will help you.
Agree with both replies of Mr. Ankur Srivastava regarding stamp duty on fresh issue and transfer of shares.

A broker having offices at 3 locations / states

Where should he pay the stamp duty on transfers of shares. Should he pay respective stamp duty depending on turn over in respective states of at the head office.

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