Conversion of Preference Shares into Equity Shares


This query is : Resolved 

(Querist)
18 April 2009 Sir/Mam

A company has Equity share capital of Rs. 50 lacs and preference share capital of Rs. 50 lacs now, it wants to convert its Cumulative preference share capital of Rs. 50 lacs into Equity Share Capital. I would like to know that when we file Form 5 and form 2 in this case, then do we have to pay stamp duty on it as it has already paid at the time of issue.


18 April 2009 Stamp duty is payable only at time of increase in authorised capital of the Company. But in case of reclassification or redeemption of equity shares there is no need for payment of stamp duty.


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