Stamp Duty on transfer of Debentures

Hello All,

An Private Limited Company (Say A Pvt Ltd) has allotted Optionally Convertible Debentures to other Private limited Company (Say B Pvt Ltd) in Year 2014.

In 2018 the B Pvt ltd transferred that Debentures to C Pvt Ltd.

In Such case is stamp duty payable by A Pvt ltd for Transfer of Shares. Please advice.

 

 

Replies (3)
Quick Summary
This discussion clarifies stamp duty implications when optionally convertible debentures are transferred between private limited companies in India. It explains that stamp duty is applicable on both the issuance and transfer of debentures, with specific rates outlined in the Indian Stamp Act. The advice provided indicates that the buyer or beneficial owner (transferee) is generally liable for stamp duty on transfers, especially for unlisted private companies.

Article 27 of the Indian Stamp Act has been amended so stamp duty is 0.005% for issuance of debentures and 0.0001% for transfer and re-issue of debentures . ... Further, all types of debentures, whether secured or unsecured and whether marketable or not, now attract stamp duty at the same rate.

Hello Prabhat ,

Stamp duty is payable by A Pvt Ltd or B Pvt Ltd as B Pvt Ltd has transferred the debentures ???

 

 

Hello , if debentures are listed on stock exchange or if shares are not listed but is in demat form then such stock exchange or depository will collect the duty but in case of pvt company or where shares are not dealt in demat form the buyer/beneficial owner/transfree will be liable to pay duty

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