03 June 2010
STAMP DUTY IS LEVIABLE ON ISSUE OF SHARES AS PER THE BOMBAY STAMP ACT ON ALLOTMENT OF SHARES . IN SOME TIME SHARE ARE ISSUED AT LARGE PREMIUM IN THE COMPANY HAVING FACE VALUE OF RS. 10/-OR OTHER. LIKE ISSUED AT RS.300 HAVING PREMIUM OF RS.290/-. MY QUESTION IS WE HAVE TO PAY STAMP DUTY ON RS. 10/- OR TOTAL AMOUNT INCLUDING PREMIUM.NAMELY RS.300/- THERE ARE DIFFERENCE OF OPINIUM IN THE MATTER . PLEASE KINDLY HAVE YOUR VALUABLE SUGGESTION IN THE MATTER.
06 June 2010
Duty is payable on the market value of shares issued. If the shares are unlisted, then market value has to be derived. Since shares aer issed on premium, the value with premium has to be considered for stamp duty purposes.
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