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Stampduty on Share Issuance

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CA OP Gupta

Chartered Accountant

23 Points Posted on 28 October 2020

- Is the Stampduty for certificate issuance applicable for Initial Shares issuance to First subscribers?

- If yes; what are consequences of shares issued without paying the stampduty and what is the way-out?

- If the shares are lost; is the stampduty applicable on the duplicate shares issued to the shareholder?

Replies (3)

Quick Summary

This discussion clarifies stamp duty obligations for initial share issuances to first subscribers, confirming it is applicable. Failure to pay can result in notices from the Stamp Duty Authority and penalties of up to 10 times the duty owed. However, stamp duty is not required for issuing duplicate share certificates when original ones are lost. The query also touches upon stamp duty for right issues in unlisted private companies.

Anjali lakra

352 Points Posted on 30 October 2020

Yes stamp duty payment is applicable on shares issued to subscribers. If you will not pay then you will be receiving notice from SDM for non compliance. You need to pay penalty in that case.

For issuance of duplicate share certificate stamp duty is not required to pay.