stamp duty

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2011 Hello..........
can anaybody pls tell me what are the consequences of non payment of stamp duty on issue of share certificate by closely held company? How to avoid that?Ours is closely held company and non profit making company

udit sharma

udit sharma (Expert)
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21 January 2011 Share Certificate issued without the payment of stamp duty @0.1% of the value of the shares(including premium) shall not be valid.

Experts ur opinion????

God Bless

CS Udit Sharma

Jayashree S Iyer

Jayashree S Iyer (Expert)
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21 January 2011 Dear Udit,

Share certificate is issued to the shareholders by the company. If it is issued without stamp duty it's the fault of the company. Why will the genuine and bonafide shareholder suffer for the fault of the company? The Stamp Act must contain some penal provision for the company issuing without paying stamp duty.

Other experts please share your views.

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