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Stamp duty on share certificate

jeets (CS ) (461 Points)

19 December 2011

Hello,

Can i affix revenue stamp i.e 99 nos of revenue stamp on a share certificate in order to pay stamp duty.

As per my understanding stamp duty has to be paid to the state gov...

Will affixing of revenue stamp implies paying of duty to the central gov..

I'm a bit confused... kindly guide me.

Thanks

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9 Replies

RG - A Helping Hand (Company Secretary) (13867 Points)
Replied 19 December 2011

RATE OF STAMP DUTY ON SHARE CERTIFICATES

S.no.	States	Rate of duty
1.	Andhra Pradesh	Thirty Paise
2.	Arunachal Pradesh	Rs. 5.00
3.	Haryana	Forty Naye paise
4.	Himachal Pradesh	Forty Paise
5.	Karnataka	One rupee for every one thousand rupees or a part thereof of the value of the share, scrip or stock.
6..	Kerala	Fifty Paise
7.	Maharashtra	Re. 1 for every Rs. 1,000 or part
8.	Manipur	AS of Assam
9.	Nagaland	Forty Five Paise
10.	Orissa	One rupee
11.	Punjab	Ten Rupees [40 n.p. under act 34 of 1960 and 25 n.p. prior thereto
12.	Rajasthan	One rupee for every one thousand or a part thereof of the value of the shares, scrip or stock
13.	Tripura	As of Assam
14.	Uttar Pradesh	One Rupee
15.	National Capital Territory of Delhi	One rupee for every one thousand or a part thereof of the value of the shares, scrip or stock

Please re-confirm it once.

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(Guest)

Dear Richankji, For the state of Rajasthan, as per Rajasthan Stamp Act, rate of stamp duty as mentioned by you is One rupee for every one thousand or a part thereof of the value of the shares, scrip or stock. My query is whether stamp duty to be paid on face value or issue price of shares. For eg. if 10000 shares of Rs. 10/- each are issued @ Rs. 100/- each then whether stampt duty is to be paid on : 10000*10 = 100000 or 10000*100 = 10,00,000/- I await your reply! Thanks, Neha

jeets (CS ) (461 Points)
Replied 20 December 2011

Dear Richank Sir,

I'm aware that the stamp duty in my case would be of Re 100

I would be grateful if you could confirm that sticking of revenue stamps would be compliance or will I require to get the share certificate franked. The company has registered office in New Delhi.

Dear Neha Madam,

As per my understanding the stamp duty would be face value + premium.. Experts view are solicited.

Thanks,

Regards.

(Guest)

Dear JJ, I am reproducing below language of Rajasthan Stamp act : Certificate or other document, exercising the right or title of the holder thereof or any other person, either to any shares, scrip or stock or any incorporated company or other body corporate or to become proprietor of shares, scrip or stock in or of any such company or body : One rupee for every one thousand rupees or a part thereof, of the face value, of the Shares, Scrip or Stock. Therefore I have doubt in my mind whether stamp duty to be paid on face value or issue price of shares since practice generally followed in Rajasthan is to pay stamp duty on Issue price (face value + premium) Thanks. Regarding your query, you can affix revenue stamp (after affixing cancel them by marking lines across the same) OR you can also get franking done. Both are proper compliance.

jeets (CS ) (461 Points)
Replied 20 December 2011

Thank you for the confirmation Neha Mam,

one of our clients a company incorporated in Rajasthan. I advised the client to pay stamp duty @ face value + premium. based on that I had made the above comments. However, I feel you have highlighted a valid point here.

Experts, Kindly guide on this present scenario, Please…..

Thanks

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mcsaju (pcs) (25 Points)
Replied 22 June 2016

on face value only not on premium

mcsaju (pcs) (25 Points)
Replied 22 June 2016

on face value only not on premium

Yesha Shah (CS) (21 Points)
Replied 05 October 2016

Hello All,

Please let me know if an e-stamp paper of proper stamp value will be valid for a share certificate or they compulsorily have to be franked? This is for the State of Karnataka.