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Stamp duty on shares allotment

DEEPAK GUPTA (Partner) (32 Points)

19 February 2012

One of our client received a notice for not paying the Stamp duty on allotment of Shares. Please tell me whether the stamp duty required to be paid on face value only or premium part also ??

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3 Replies

Ajay Mishra (Company Secretary) (74337 Points)
Replied 19 February 2012

Actually stamp duty will pe paid on the value of shares.

Regards

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(Guest)

Hi,

Mr. Gupta,

Pls note stamp duty is subject matter of respective state act. So you should first check stamp act of your state and then see on which amount you have to pay stamp duty.

Like in Bombay stamp act 1958,

CERTIFICATE OR OTHER DOCUMENT, evidencing the right or title of the holder thereof, or
any other person either to any shares, scrip or stock in or of, any incorporated company or other body
corporate, or to become proprietor of shares, scrop or stock in or of, any such company or body -

One rupee for every one thousand rupees or a part thereof, of the value of the shares, scrip or stock.

Explanation.- For the purpose of this Article, the value of shares, scrip or stock includes the amount of premium, if any.

Rajasthan Stamp Act, 1998:

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.

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