stamp duty on share certificates

[Gajendra Mewara]

Dear Members,

 

If a company has not paid the stamp duty at the time of issuing share certifictes two years back, can it now regularise the same by getting the share certificates franked in todays date. if yes, what is to be done for that.Is there any penalty to be paid.

 

Thanks

Gajendra

[Jayashree Chandrasekaran]

stamp duty for issue of shares is only 30p for one certificate
irrespective of the amount of shares per certificate....there is no
question of penalty....
Jayashree

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C.JAYASHREE
PARTNER
S.GANESH&ASSOCIATES
CHENNAI
98840 17120

[anjali bansal]

Dear Gajendra

Stamp duty on share certificates is subject to state law in this regard.

Pls know that the legality of Share Certificates is not affected due
to non payment of stamp duty. however, the same may not be accpeted by
any court as evidence, till the time the stamp duty is paid. This is
called impounding. In short, you can pay the stamp duty now and make
the default good. Also know that, if the document is impounded by
court, a penalty may be imposed by the court upto ten times of the
stamp duty payable (upon discretion of the court). And pls be informed
that many companies have been able to escape this penalty by stating
genuine ignorance of stamp laws to the court.

Members, pls correct if i am wrong.

Anjali

[Bidu Bhusan Dash]

Dear Jayashree

Where it is mentioned the stamp duty is 30 p per share certificate, please share

Regards,
Bidu

[Jayashree Chandrasekaran]

SCHEDULE I
STAMP DUTY ON INSTRUMENTS-Tamil Nadu
(See Section 3)
SL.
NO
DESCRIPTION
OF THE
INSTRUMENT
Rate of stamp duty
1976-77 w.e.f 1.8.75
1977-78 w.e.f
1.7.92
w.e.f
11.7.2001
Item No 19
revised to Re 1 irrespective of the value of the certificate
Jayashree

[anjali bansal]

Dear Jayshree

Gajendra did not mention the state in which his company is registered.
So, we can not assume that rates applicable in Tamil Nadu are
applicable to his company. pls appreciate that rate of stamp duty on
issue of share certificate is subject to the stamp act, applicable to
the state in which the Shares are being issud. that is why the amount
of stamp duty varies from state to state.

Many thanks

Anjali

On 2/8/12, Jayashree Chandrasekaran <jayak...@gmail.com> wrote:

[Jayashree Chandrasekaran]

Yes...agreed
Jayashree

[Gajendra Mewara]

Thanks for your reply.

 

My comapny is in mumbai and here the rate of stamp duty is Rs.1 for every 1000 of value.

 

if I go for franking whether a signed share certifiate will be accepted by bank for franking.

 

Also i came to know that some companies affix revenue stamps. whether we can affix revenue stamp if the amount for stamp duty is less.

 

Thanks

Gajenda

[anjali bansal]

Gajendar

Banks generally do not accept signd share certificates for franking.
You can try to convince them by explaining the rational of providing
signed certificates. In worst case scanario, you can cancel the old
certificates, issue duplicate and get them franked.

I know in Delhi, affixing revenue stamp has been disallowd recently
and every comapny has to get the certificates franked. However, i am
not aware bout Mumbai. you can cehck the same with some PCS in Mumbai.

Thanks

Anjali

On 2/8/12, Gajendra Mewara <gajum...@gmail.com> wrote:

[anjali bansal]

Gajendra

If yours is a closely held company, then you can affix revenue stamp
with back dating. Since, fanking was not mandatory 2 yrs back, no body
will b able to make out the default. If the amount of duty is less,
same can be affixed on the certificate itself, else you can use
additioanl sheets for affixing revenue stamp.

Anjali

On 2/8/12, anjali bansal <anjali.b...@gmail.com> wrote:

[Gajendra Mewara]

Thanks a lot.

[Jayashree Chandrasekaran]

In Chennai we affix revenue stamps
Jayashree

On 2/8/12, Gajendra Mewara <gajum...@gmail.com> wrote:

[Nishi jain]

Dear sir,

My question is whether stamp duty is to be paid on shares of a private
company. My company is in mumbai.

--
Kind Regards

CS Nishi Jain

[Gajendra Mewara]

it doesnot matter whether your comapny is a private or public. if you are issuing shares in a particular state, it attracts the stamp duty as per concerned state law.