Gift deed - stamp duty for transfer of shares

[GIRIJA NAGVEKAR]

Dear All,

Required help regarding Gift Deed of Equity Shares in Pvt Ltd Co.

In Pvt ltd company there is foreign shareholder and that shareholder intends to transfer all its equity shares to his daughter.

Accordingly, Gift Deed is executed in foreign country and being sent to India.

Now ;

1. Once the Gift deed is received in India how much stamp duty is required to be affixed on Gift deed ?? is the stamp duty applicable is 0.25% of consideration of share transfer on the gift deed.

2. Share transfer forms are duly prepared and along with original share certificates are submitted to the Company.

3. As shares are transferred by way of Gift deed & no consideration is paid we can mention on the share transfer form that shares  are transferred in form of gift and do we still require to affix share transfer stamps.

Kindly guide as I am not able to identify how much stamps to be affixed on gift deed.

Regards,

GN

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CS Girija Nagvekar

Company Secretary -in practise

c/o 501,5th Floor, B Wing,

Sunteck Kanaka Corporate Park,

Patto Plaza, Panaji 

Goa 403001

Mobile: 9960285296

Email:cs.gi...@gmail.com

[GIRIJA NAGVEKAR]

CAN ANYONE HELP ON THIS MATTER PLEASE

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[franc...@gmail.com]

The new rates of stamp duty effective 1 July 2020 are:

Mutual fund purchases/switch-in 0.005%

Mutual fund transfer-0.015% 

Purchase of shares-0.005%

Transfer of shares-0.015%

Debenture issues -0.005%

Transfer and re-issue of debentures-0.0001%

Where shares are transferred without consideration ie by gift, it is safe to pay stamp duty on the fair value of shares.

In my case, stamp duty was paid accordingly. From 01.07.2020 stamp duty was reduced substantially. Now its only Rs. 15 per 100,000/-

[GIRIJA NAGVEKAR]

Where shares are transferred without consideration ie by gift, it is safe to pay stamp duty on the fair value of shares. :  Right 

But do you mean to say that much stamp duty to be affixed on the gift deed. Is it so ??

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[franc...@gmail.com]

Yes. See now stamp duty is a paltry amount. for 1 CR. It is only Rs. 1500/-. So affix the stamp 

[Mohan Ramaswami]

There are 2 separate issues, one, is execution of gift deed, on what value of stamp paper or duty 

And second is share transfer duty payable on such gifting of shares. 

On share transfer by way of gift it is 0.015 of the fair value. Since it is a pvt Ltd co, it is advisable to get an independent valuation done. 

Share transfer duty is uniform all over India, 

But Gift deed regn charges will vary according to the state where ur regd office is situated. 

Regards, 

Mohan

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