Stamp duty on share allotment

This query is : Open

P.C. Joshi (Querist)
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25 November 2011 Dear Friends,

Now a days we come to know that collecter of stamps in Delhi and other states are issuing notices to companies for default in payment of stamp duty in share certfcate on allotment of shares. Some of you must have come across thi sissue recently. I have some queries in this repect can any one please clarify.

1. WE PAY STAMP DUTY WHILE INCORPORATING A COMPANY AND ALSO WHILE INCREASING THE AUTHORISED CAPITAL. Then what else is the stamp duty payable on allotment.

2. If yes it is payable what is the rate and how the stamping is done i mean is it a self adhesive stamps or embossed on the share certifcate and the systems woks.

3.What is the option for the companies who have viloted this norm.
4. Suppose a company sou moto wants to comply with the stamp duty payment for past as well as future cases what should it do. WHich office in Delhi should be contacted.

5. I understand that in Haryana there is a stamp duty of Rs 10/- irrespective of quantum/amunt of shars capital issued. SO some company are showing the palce of allotment/board meeting in haryana is it valid.

6. In case any notice has been receibved what reply should be given at the first instance.

Looking forward to plenty of responses on this matter.

Thanks & Regards

P.C. Joshi
B.Com, ACS, LLB
Mobile- 09891702927

Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
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25 November 2011
Dear Member,
1. The stamp Duty is not paid in respect of allotment of shares but on issue off share certificates subsequent to allotment. Hence its payable.
2. The stamp duty is paid according to the provisions of relevant stamp acts of the state.