Stamp Duty On the Share Certificates to be issued to Promote

As per my knowledge  stamping is need only at the time of shares transfer.

wait for expert's opinion

Dear all,

In case of issuance of share certifiacate the revenue stamp of Rs 0.50 is require for every Rs. 100/- so you have to adher revenue stam of whatever amount calculate as above. if it is not posible to adher huge no. of stamp ticket you have to apply to suppretendent of stamp to pass order of payment of consolidated stam duty on issueing certificate.

According to me there is no provision to pay stamp duty on certifiacate with the mode of franking because it will go in the pocket of state govenment and company have to pay stamp to cental govenment to so franking may not the proper for stamping share certificat.

I am not sure about frenking if i am wrong please tell be so i can clear my concept.

Thanks.

Thanks guys for replying!but I will be thankful if Ankur Sir replies on this issue.

Regards,

Priti Naik

Dear Priti,

Yes stamping is compulsory. As  per Section 3 of Indian Stamps Act 1899,which is adopted by the state stamp Acts, "Every share certificate must bear the necessary stamp duty as per the stamp Act of the respective state/ union territory from which certificate is issued ". The rates of stamp duty can be obtained with reference to relevant article of given state Act. For e.g. in Delhi article 19 prescribes stamp duty @ Re 1 for every Rs 1000 or part thereof.

Thanks & Regards

Smriti Sharma

B. Samrish & Co.

Company Secretaries

www.bsamrishindia.com

Thanks Smriti..thanks alot!

Regards,

Priti Naik

There is no stamp duty as such on share certificates, only share transfer attracts stamp duty at 0.25% of the consideration amount.

Please note Share Purchase Agreements attracts the duty mentioned above by CS Smriti

Smriti is right.

Revenue stamp is to b pasted on share certificates at the rate of Re.1 stamp for every Rs.1000 value of shares

RATE OF STAMP DUTY ON SHARE CERTIFICATES