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.
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