Stamp duty in respect of buy back of shares

This query is : Resolved

piyush (Querist)
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05 January 2012 we have buy back the shares from the sharedolder and we are private limited company, i m not sure about the stamp duty to be paid in respect of buy back of shares and wats the rate of stamp duty to be paid in respect of buy bcak of shares and it will on the face value of the shares or the mkt price

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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06 January 2012 On transfer deed stamp duty is payable as per stamp duty prevailing: -
1. In the state where deed is executed or
2. In the state where registered office of company is situated

whichever is more

normally we use to pay 0.25% duty.

Its on transaction value and not on face value.

Regards

piyush

piyush (Querist)
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06 January 2012 dear pawan i think stamp duty is not to be paid on the buy back of shares by the company and the rate of stampduty is 0.5% not 0.25%.the buy back no shares is being transfered to the company as the share capital get reduced its not a share transfer so i dnt think stamp duty to be paid

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