StampDuty

Section 3 of the Stamp duty Act specifies the charging event for imposition of stamp duty is the execution of the document. Therefore, stamp duty on share certificate is payable based on where the share certificate is issued. Issue of share certificates is based on the place where the Board Meeting is held:

Steps of issue of share certificates

  • Send notice to hold Board Meeting for further allotment of shares.
  • Allot shares to applicants in board meeting.
  • Within 90 days of share allotment, the company must issue share certificates to allottees.

But share certificates can not be issued without prior payment of requisite stamp duty on the same as per the respective state stamp law.For example, rate of stamp duty in delhi is Rs. 1 for each Rs. 1000 value of shares.

  • Authorised signatory has to make an application to the concerned Collector of Stamps (Cos).
  • After due scrutiny of all papers/documents submitted with the COS, he will issue a challan mentioning therein amount to be paid in treasury.
  • After depositing asked amount, he will get confirmation from the Treasury Officer about the receipt of amount, if deposited amount is over and above Rs. 1,000.
  • After verification, Collector of Stamp will issue a certificate mentioning therein that the applicant company has paid the due consolidated stamp duty.

 

Documents required for Application for consolidated payment of stamp duty on share certificates

a)     List of directors. (Annexure A)

b)     List of Allottees.  (Annexure B)

c)     Certified copy of Board Resolution regarding allotment. (Annexure C)

d)     Certified copy of Copy of MOA & AOA of the Company. (Annexure D)

e)     Certified copy of Form 2 and its Challan. (Annexure E)

f)        Original Share certificate (Annexure F)

g)     Details as per format

h)     Application to COS

 

 Click below to download format of application

Details as per the prescribed format

 

Cover letter for Application

 

Annexure A- List of Directors

 

Annexure B- List of allottees

 

   Annexure C – Board Resolution

 

 

  • http://commerceduniya.com/members/gurleen/ Gurleen

    Good work Rahul. Keep it up

  • http://commerceduniya.com/members/mukesh_1cs/ Mukesh Girdhar

    This is really a good work done Rahul. Keep on contributing to your profession…..

    • http://commerceduniya.com/members/rahul/ rahul

      Thanks Mukesh…!!!

      • http://commerceduniya.com/members/contactan/ Ananya Consultants

        Dear Sir,

        Are the attached procedures and formats applicable for Gujrat ? If yes, where can the stamp duty be paid in Ahmedabad. Kindly advise.

        contact@ananyaglobal.com

        • http://commerceduniya.com/members/rahul-2/ Commerce Duniya

          Ananya Consultants,

          You can use the formats for Gujarat also. Rate of stamp duty in Gujarat is Rs. 1 for every Rs. 1000 value. You need to pay stamp duty to Collector of Stamp, Gujarat. Consult website of Gujarat Govt for address in Ahmedabad.

          • Ananya Consultants

            Need help in payment of Stamp Duty at Ahmedabad. Can you help me sir ?

            Best Regards,

  • http://commerceduniya.com/members/bhupendra-kaushik/ Bhupendra Kaushik

    Sir, do we need to pay stamp duty on whole amount i.e. Premium + Face Value or only on Face Value, please let me know, along with reference which can be produced in govt. office.

    Thank You.

    • CA Pawan Mittal

      Hi Bhupendra
      Yes, you have to pay stamp duty on whole amount i.e Face Value+Premium.

  • Sourabh

    What is the procedure to pay stamp duty in bihar? How much is the rate of stamp duty

  • SHIVEN

    IS THERE ANY OFFICIAL SOURCE OR GOVERNMENT WEBSITE THAT CAN AUTHENTICATE THE ABOVE PROCEDURE.

  • SHIVEN

    is there any way this information can be authenticated .or could you give me the source of this info .Thanks

  • sajad

    what is the procedure, if the company has defaulted in payment of stamp duty regarding the previous allotments.

  • http://commerceduniya.com/members/csranjana/ Ranjana Kumari

    Is the annexure E i.e. Form 2, is the Form-2 which is filed wth MCA please clarify this

  • jyoti

    Can anyone Help me out …., There is a company who allot 469926 fully paid up equity shares of INR 10/- each at premium of INR 99.44.
    can you please tell about premium,that how can this co.issue share at INR 99.44 premium.