vaidehi (student) (59 Points)
26 August 2016What is the procedure to pay Stamp duty on Share Certificate as per Companies Act 2013,?
Can the share certificate be franked? What is the procedure for franking?
A private limited Company incorporated in Mumbai, Maharashtra in July 2016, has 4 shareholders, the company has to issue share certificate to its shareholders holding shares 3000, 1000, 3000 and 3000 of Rs 10. each. What is the rate of Stamp duty to be paid ? can these certificate be franked ?
Please suggest.
Thank you.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 26 August 2016
1) Stamp duty has to be paid as per Maharashtra Stamp Act 1958 and not Companies Act 2013.
2) Rate of stamp duty in Maharashtra is Re.1 for every Rs.1,000 or part thereof of value of shares.
3) Yes, franking can be done for stamp duty.
vaidehi
(student)
(59 Points)
Replied 26 August 2016
Thank You Sir.
Can you tell me the procedure for Franking of Share certificates?
CAclubindia
