Dear Friends,
I come across a query from my client in respect to the applicability of stamp duty.
Fact:
The client is a private limited company based in New Delhi and have foreign shareholders.
Could you please let me know in case if anybody practically handled the situation that whether there is a stamp duty applicability in case of given below two situtations:
1. Whether stamp duty would be payable in case of increase in authorised share capital of the private limited company in India? In case your answer is in affirmative, could you please let me know the rate at which the amount would be paid?
2. Whether the stamp duty would be payable on the value of consideration received for the equity shares when issued?
My understanding is that stamp duty would be payable on the nominal value of shares when issued.
Thanks in advance for your valuable suggestion.
Warm Regards,
CA. Divyanshu Agrawal
CAclubindia
