24 April 2009
Private limited company’s incorporation date is 27th aug 2004, What is the procedure to pay stampduty on shares.Can stamp duty be paid on share certificate after it is issued. If, yes up to what time ? Is it possible to pay after three or four years ?
24 April 2009
The stamp duty is to be paid on the value/amount of the shares that have been allotted to the allotee. e.g. 1,000 shares, face value per share Rs.10 = Rs.10,000. Stamp duty will be paid on Rs.10,000 at the prescribed percentage. The stamp duty is paid after the share certificate has been prepared. Stamp duty is paid in the form of "Franking". It means that the amount is paid in the prescribed bank and the bank affixes a Franking stamp on the Share Certificate. Such certificates bearing the stamp duty PAID stamp are then issued to the shareholders. The stamp duty can be paid after 3-4 years. For this, the company has to fill the Adjudication form and also may be required to pay penalty. Please consult a proper person in this regard in order to avoid further delay.
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