Is Stamp duty to be made on Share Certificate?

Is Stamp responsibility to be made on Share Certificate?, This article would be discussing you about the requirements regarding the stamp duty to be paid to the authorities in case of the share certificates to be provided to the share holders. There has been much confusion concerning the exact same, so this post would clarify the exact same. It would also clarify you about the payments to be made within what time limit and consequences for not paying the exact same, what rate to be made in different states. I have taken the example of the DELHI and described whole post. Now you can scroll down below n check more information regarding “Is Stamp duty to be made on Share Certificate?”

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Material in this Short Article.

Stamp duty

Treatment for getting the stamp task in Delhi:

The business who wants to allocate shares would be setting aside to the share holders. Company will have to provide the share certificate to the share holders within a time duration of 60 days from the date of allotment of shares.

2. After the share certificate is provided within the prescribed time period then the files need to be submitted to the government within 30 days from the date of issuance of certificate. The file list is explained here:

  • List of Shareholders
  • List of Existing Directors
  • Original Share Certificate
  • Adjudication cost of Rs 10 to the department
  • Covering letter
  • Qualified copy of Form 2 with challan
  • Certified copy of MOA and AOA.

3. Then the federal government will prepare a responsibility chart within the 15 to 20 days from the date of submission of files, task chart will consist of Name of the Business, Address, Stated value, Date of problem, etc.

4. After the task chart is prepared the government would offer the challan to be paid by the business in the defined banks and the company needs to pay within 5 to 6 days that amount of stamp duty.

5. After the challan is paid, the copy of the challan has to be deposited to the profits department, after the challan is received by the income department they will release the certificate of the stamp duty paid.

Important Issues:

  • There are lots of questions regarding the stamp duty to be paid when there is concern of replicate or share split, the response to that regularly asked question is yes. However in the Act it is plainly pointed out that the optimum amount to be charged in case of the issue of shares is Re. One. So we require to take the stamp responsibility spent for Re. 1 only.
  • The concern will likewise develop that whether the stamp task will be paid in case of the transfer of shares from a single person to other. The answer to it is No. No stamp responsibility will be required in case of transfer of shares.
  • In case of share certificate to be released in dematerialized kind, then likewise the stamp responsibility would be required to be paid.
  • The question likewise emerges that at what amount the stamp duty is to be paid. The stamp responsibility is to be paid on the quantity totaling to face worth and premium. The rates for the stamp duty vary from state to state.

Must Read–

  • Is reduction enabled stamp responsibility & registration charges?
  • Exemptions available under Sec. 80 C for Stamp Task Paid
  • Kinds of stamps and some ideas of stamp task
  • Transfer of Shares in case of Death of the Holder
  • Treatment for Transfer of shares– Time limit, Stamp Task

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