Stamp duty on shares transfer
This query is : Resolved
12 April 2017
who will bear stamp duty on share transfer of private company? and how?
12 April 2017
The Section 29 of Stamp Act says that in the absence of an agreement to the contrary the expenses of providing the proper stamp shall be borne, in the case of transfer of shares of an incorporated company or other body corporate, by the persons executing the document.
In the case of transfer of shares of a company it is the seller who is responsible for payment of stamp duty (Union of India vs. Kulu ValleyTransport Ltd. (1958) 28 Comp. cas. 29).Transferor has to bear the stamp duty
As per Section 17 of the Stamp Act any instrument chargeable with duty, should be stamped before the instrument is signed. Thus it indicates that transferor has to bear the stamp duty. But in practice some times the transferee who affixes the share transfer stamps on the instrument at the time of lodging the same for registration of transfer in his favour.
In the case of transfer of shares of a company it is the seller who is responsible for payment of stamp duty (Union of India vs. Kulu ValleyTransport Ltd. (1958) 28 Comp. cas. 29).Transferor has to bear the stamp duty
As per Section 17 of the Stamp Act any instrument chargeable with duty, should be stamped before the instrument is signed. Thus it indicates that transferor has to bear the stamp duty. But in practice some times the transferee who affixes the share transfer stamps on the instrument at the time of lodging the same for registration of transfer in his favour.
Message likes :
1 times
12 April 2017
if transferee pay stamp duty on shares transfer then there is no violation of any compliance? that transferee may pay stamp duty?
13 April 2017
YES Transferee may pay stamp duty
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- GST Registration Cancellation books of accounts asked by officer
- TDS deduction 194J instead of EPF
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
