Is Stamp duty to be made on Share Certificate?
Procedure for getting the stamp duty in Delhi:
- Firstly the company who wants to allot shares would be allotting to the share holders. Company will have to give the share certificate to the share holders within a time period of 60 days from the date of allotment of shares.
- After the share certificate is issued within the prescribed time period then the documents need to be submitted to the government within 30 days from the date of issuance of certificate. The document list is described here:
List of ShareholdersList of Existing DirectorsOriginal Share CertificateAdjudication fee of Rs 10 to the departmentCovering letterCertified copy of Form 2 with challanCertified copy of MOA and AOA.
- Then the government will prepare a duty chart within the 15 to 20 days from the date of submission of documents, duty chart will contain Name of the Company, Address, Face value, Date of issue, etc.
- After the duty chart is prepared the government would give the challan to be paid by the company in the specified banks and the company has to pay within 5 to 6 days that amount of stamp duty.
- After the challan is paid, the copy of the challan has to be deposited to the revenue department, after the challan is received by the revenue department they will issue the certificate of the stamp duty paid.
Important Issues:
There are many questions regarding the stamp duty to be paid when there is issue of duplicate or share split, the answer to that frequently asked question is yes. But in the Act it is clearly mentioned that the maximum amount to be charged in case of the issue of shares is Re. One. So we need to take the stamp duty paid for Re. 1 only.The question will also arise that whether the stamp duty will be paid in case of the transfer of shares from one person to other. The answer to it is No. No stamp duty will be required in case of transfer of shares.In case of share certificate to be issued in dematerialized form, then also the stamp duty would be required to be paid.The question also arises that at what amount the stamp duty is to be paid. The stamp duty is to be paid on the amount totaling to face value and premium. The rates for the stamp duty vary from state to state.
Is deduction allowed for stamp duty & registration charges?Exemptions available under Sec. 80C for Stamp Duty PaidTypes of stamps and some concepts of stamp dutyTransfer of Shares in case of Death of the HolderProcedure for Transfer of shares – Time limit, Stamp Duty
