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Stamp duty on shares

Law Aspire (CS) (755 Points)

25 January 2010

when a company is issuing its shares in demat form whether it is required to pay stamp duty and if yes then at what rate...?

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7 Replies

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 25 January 2010

I also want to know the rate of stamp duty in case of fresh issue..

thanks in advance...

Dear Rachit,

On share transfer, the rate of stamp duty is Rs.0.25 on every Rs.100 consideration...

here are some discussion on this matter..

/forum/re-form-for-transfer-of-shares-62923.asp

Adarsh

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 25 January 2010

Dear Adarsh, In case of issue of new share certificate the rate of stamp duty is, w.e.f. 01.05.1994, Re. 1 for every one thousand including premium. (i.e. issue value).

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 25 January 2010

In case of share transfer the stamp duty is 0.25 per Rs.100/-( i.e. per 100 of transfer value and not the face value).

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CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 25 January 2010

Thanks for info Ankur Ji....

KRUPA (WHOLE TIME COMPANY SECRETARY) (21 Points)
Replied 30 January 2010

Yes, the issuer(the company) has to pay the relevant stamp duty as applicable irrespective of whether it is issued in either physical of demat mode. This is because in the Companies Register of members the respective Depository i.e. NSDL or CDSL shall be the registered holder. It will have to issue a share certificate in the name of NSDL/ CDSL on which it will have to pay the stamp Duty. Stamp duty is payable @ 0.10% on the value of shares. So you will have to pay the stamp duty on the value of shares which the NSDL/ CDSL is holding. Kindly go through the procedure of Dematerialization. As per Finance At, 2000, stamp duty is waived only for transfer of shares within Depositories. Hope this information will help you.

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CA.SKR (CA; CS-Final (One Group); DISA (ICAI); Insolvency Professional) (442 Points)
Replied 30 January 2010

Agree with both replies of Mr. Ankur Srivastava regarding stamp duty on fresh issue and transfer of shares.

k.venkatraman (accountant) (21 Points)
Replied 26 April 2011

A broker having offices at 3 locations / states

Where should he pay the stamp duty on transfers of shares. Should he pay respective stamp duty depending on turn over in respective states of at the head office.