This is Satyanarayana.P i have a query regarding Stamp Duty
1.When we have to Pay Stamp duty on shares?
A. At the time of Issue Of Shares? or B. At the time of Transfer of Shares?
Because somewhere it is saying that there is no stamp duty on issue of shares, the stamp duty attracts only when the shares transfered. which is Right?
17 February 2010
Payment of stamp duty on issuance of shares is governed by the respective state law. In Gujarat it is 1 Re. for every Rs. 1000/- of market value. It may be different for your state. The simplest way of paying the duty is to print a Specimen Share Certificate and pay the duty by way of electronic franking which is done by most banks. Keep this stamped certificate as the conclusive proof of your payment of stamp duty.
Each share certificate issued for this series should mention that consolidated stamp duty has been pade on ____.
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