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Stamp Duty

Rakhee (Company Secretary) (62 Points)

10 May 2008

Whether Government of India is exempted to pay stamp duty as a transferee in case some shares are transferred from a government company to it? Kindy explain.

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3 Replies

R.V.RAO (SERVICE) (4125 Points)
Replied 10 May 2008

Transfer of movable and immovable properties in India attract stamp duty.Corporate restructuring involves transfer of assets/liabilities of the TransferorCompany to the Transferee Company, which attracts stamp duty. The liability tostamp duty would depend upon the State in which the instrument evidencingtransfer of property is executed. The rate and incidence of stamp duty varies fromState to State

.MOST OF STATE GOVTS DO EXEMPT GOVT. COS. FROM STAMP DUTY ON SUCH TRANSFER OF SHARES ON AN APPLICATION BEING MADE TO THE RESPECTIVE STATE FINANCE DEPT / INSPECTOR GENERAL OF REGN AND STAMPS .

BUT IT IS THE DISCRETION OF RESPECTIVE STATE ,THE STAMP DUTY BEING A STATE SUBJECT.

BUT AS SUCH TERE IS NO BLANKET EXEMPTION FOR GOVT. COS. FROM STAMP DUTY.

R.V.RAO

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A K Singh (Service (Legal)) (59 Points)
Replied 27 May 2008

I am agree with u that stamp duty is state matter.

can u pls clarify the instance of stamp duty on isssue of share certificate...whether it is depends on the state where Registered office is situated or we can pay as per the place/state where board meeting held for issue.

Regards