Pawan Singhal (chartered accountant) (655 Points)
19 May 2010as per notification Stamp duty for transfer of shares is 25 paise for every Rs. 100 or part thereof of the
value of shares as per Notification No. SO 130(E), dated 28-01-2004 issued by the
Ministry of Finance, Department of Revenue, New Delhi.
if co. shareholder transfer 10000 share for Rs. 1 and co. share book value is rs. 60 per share . So on which amount shareholder have to pay stamp duty on Rs. 10000 or On rs. 600000.
daya shankar singh
(CA ,CS)
(629 Points)
Replied 19 May 2010
The stamp duty liabillity is arise on the amount of transfer i.e. Rs.10000, it has nothing to do with the book value. It is mentioned in the law the amount payable as stamp duty on transfer of share is on the market price prevailing on the date of transfer
Pawan Singhal
(chartered accountant)
(655 Points)
Replied 19 May 2010
but as per above mentioned notification what is the means of value of share. is it book value or price of share on which share is transfered.
ars
(CS)
(445 Points)
Replied 21 May 2010
It is the consideration at which the shares are brough/sold is important.
the share transfer stamp duty is payable at the market value on the given date ie. the total consideration of the transaction is to be taken into account.
Jyoti Aggarwal
(COMPANY SECRETARY)
(336 Points)
Replied 22 May 2010
Dear mr. pawan,
It is to be paid at book value or consideration price whiever is higher.
it has been held in Union of India v Kulu Valley Transport Ltd. (1958) that in case shares are not quoted, the value of the shares for the purpose of stamp means the price that the shares would fetch at the time of transfer or consideration agreed, whichever is higher.
CAclubindia
