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Kunal Khilnani (Service)     05 January 2010

Stamp Duty - Demat

Abc Pvt. Ltd. wishes to issue 1000 shares of Rs. 10 each to its shareholders in Demat mode.


Will Abc Pvt Ltd have to pay stamp duty on such issue (like in case of physical share certificates)?


There is no stamp duty on transfer of shares in demat mode.


 1 Replies

V. VASUDEVAN (LEGAL COUNSEL)     05 January 2010

 Every time a Company makes a fresh issue of shares, the one time stamp duty is applicable. The company has to reckon the stamp duty on the basis of the value of the shares and remit the consolidated stamp duty to the stamps authorities OR alternatively affix the stamps in a consolidated certificate printed for the purpose.

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