Amount of stamp duty on share transfer of unlisted company

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RAHUL M (Querist)

24 March 2021 if the value of consideration of one share transfer of Rs. 150 (consideration amount), then what amount of stamp duty needs to be paid on such one share transfer

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

12 July 2024 In India, the stamp duty payable on share transfer depends on the state where the transfer takes place, as stamp duty rates vary across states. The calculation typically considers the higher of the consideration amount or the market value of the shares.

Assuming the consideration amount for the transfer of one share is Rs. 150, here’s how you can determine the stamp duty payable:

1. **Consideration Amount**: Rs. 150 (if this is the higher of the consideration amount or market value)

2. **Stamp Duty Rate**: This varies by state. For example:
- In Maharashtra, the stamp duty rate on share transfers is 0.25% of the consideration amount or market value (whichever is higher).
- In Delhi, the stamp duty rate is 0.015% of the consideration amount or market value (whichever is higher).

3. **Calculation**:
- Calculate the stamp duty based on the rate applicable in your state. For instance:
- If the stamp duty rate is 0.25% and the consideration amount is Rs. 150:
- Stamp Duty = 0.25% of Rs. 150
- Stamp Duty = Rs. 0.375 (but generally, stamp duty is rounded off to the nearest rupee).

- If the stamp duty rate is 0.015% and the consideration amount is Rs. 150:
- Stamp Duty = 0.015% of Rs. 150
- Stamp Duty = Rs. 0.0225 (rounded off to the nearest rupee).

4. **Minimum Stamp Duty**: Some states have a minimum stamp duty amount that needs to be paid, irrespective of the consideration amount. Check your state's regulations for this information.

5. **Payment and Compliance**: Stamp duty is typically paid through e-stamping or by purchasing stamp papers, depending on the state’s rules. Ensure you comply with the state-specific requirements for stamp duty payment and documentation.

To get the exact stamp duty amount for the transfer of one share at a consideration of Rs. 150, refer to the specific stamp duty rates applicable in your state or consult with a local chartered accountant or legal advisor familiar with state-specific stamp duty regulations.

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