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E stamp on share transfer

CS Arvind meena (Corporate Law Consultant) (174 Points)

01 April 2016

Dear Sir/Madam, One of my client want to transfer its shares to another person, on the execution of Transfer deed we have to pay stamp duty on transfer. My question is whether we can use e stamps issued by stamp vendors or share transfer stamps issued by treasury?

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CS Arjun Rajagopal (B.com, ACS) (1056 Points)
Replied 02 April 2016

Hi Arvind,

The general practice followed in the case of transfer of shares is affixng share transfer stamps.

If the amount involved is large then separate blank papers can be used for affixing share transfer stamps. I know this is a tedious task.

The Companies Act, 2013 or Indian Stamp Act, 1899 is silent about the mode of payment of stamp duty.

You may check with treasury department in your area whether franking of stamps is allowed or epayment of stamp duty is allowed on transfer of shares? In states like Karnataka, Maharashtra franking can be done. In our state Kerala no franking is allowed. So we are forced to affix stamps. It is the discretion of revenue dept of the state.

Regards,

Arjun Rajagopal