stamp duty on share certificate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2011 Hi

I am working in a public company. The group company ( closely held public company)has not yet commenced its business.It has allotted shares to its shareholders.As the company has no sources to pay stamp duty on its share certificates. I would like to know whether stamp duty is required to be paid only where the registered office of the company is situated or else where the Board meeting is held or where the share certificates have been executed.
Can company take advantage of lessor stamp duty by signing the share certificate in that state where the stamp duty is less. we need to avoid heavy stamp duty as the company is in its inception stage.

Kindly reply at utmost priority.

Thanks in advacne

udit sharma

udit sharma (Expert)
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18 March 2011 Yes....

This is the practice most of the Companies are following for the purpose of reducing the burden of stamp duty payable on issue of share certificates.

Stamp Duty is payable in accordance with the rates of stamp duty prevailing in the state where the Board Meeting is held for issue of shares.

God Bless

CS Udit Sharma

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2011 can u pls quote related section and judgement which says about the stam duty to be payable where the board meeting is conducted.

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