Ours is a public limited non-listed company. We are going to issue shares through private placement. My querries are: 1) What is the rate of stamp duty to be paid on share certificate 2) Can we pay stmap duty by franking share certificate? Is it legal to frank share certificate? If not than what is the way to pay stamp duty on sharecertificate? 3) Stamp duty is to be calculated on paid up value or paid up + primum?
27 September 2007
Share Certificates. In Delhi the Stamp duty @ of Re.1/- for every one thousand rupees or part thereof of the value of shares has to be paid at the office of Collector of Stamps/SDM. please check the state rates where it is done as stamp duty is state subject. franking is allowed and done by inspector general(IG) of stamps in each state. before stamping you have to declare before the IG the value fOr which STAMPS have to be franked.usually franking done on face value of shares.you may declare face value and get franking done. C.A.R.V.RAO
Certificate or other document, exercising the right or title of the holder thereof or any other person, either to any shares, scrip or stock or any incorporated company or other body corporate or to become proprietor of shares, scrip or stock in or of any such company or body :
One rupee for every one thousand rupees or a part thereof, of the face value, of the Shares, Scrip or Stock.