Hi Frndz,
I am uploading this information which I recieved as an e-mail.
In a recent judgment dated 21.04.2011, Delhi High Court has ordered that no Stamp duty can be levied when the Authorized Share Capital is increased.
It provided that the Stamp Act, as applicable to NCT of Delhi does not provide for payment of Stamp Duty when a Company increases its Authorized Share Capital beyond the amount it had at the time of incorporation.
High Court has further provided the fiscal statutes like the Stamp Act need to be construed strictly and unless the subject is squarely covered by clear words of the charging section, he can not be taxed by implication.
Pursuant to this judgment, two alternative actions appears to be possible by the Government authorities:
1. Stamp Act, as applicable to Delhi might be amended by GNCTD to specifically cover the cases of increase in Authorized Share Capital under the stamp act ambit.
2. MCA might amend its present MCA21 system to provide that no Stamp duty is leviable on the increase.
A copy of judgment is enclosed for reference.
CAclubindia
