Kunal Khilnani (Service) 06 January 2010

STAMP DUTY

ABC Pvt/ Ltd. has been issuing and allotting equity shares without paying stamp duty, inadvertently.

As on date the paid up share capital of ABC Pvt. Ltd. is around Rs. 10 crores.

Kindly guide as to whether there is a pay of paying the stamp duty on those shares or the way forward.

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3 Replies

sunil (cs) 07 January 2010

Mr. Kunal In case of allotment, Stamp duty is payble on issue of the share certificate i.e. 0.1%.issue of share certificate without payment of stamp duty will make the in valid of the same. Sunil

Kunal Khilnani (Service) 07 January 2010

dear sunil,

my apology i am unable to understand the meaning of your last phrase "0.1%.issue of share certificate without payment of stamp duty will make the in valid of the same".

CA Adarsh Agrawal (CMD of SHAYVIDZ Group) 09 March 2010

Kunal,

u want to know about stamp duty on issue of share certificate?

if yes, then rates are :-

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).