Stamp Duty applicable

[Jyoti CS]

Dear members,

XYZ LTD, a listed company in Mumbai is proposing to subscribe Rs.1.80
crores in the paid up equity share capital of a Private Limited
Company in Bangalore, Karnataka in terms of the "Share Subscription
and Shareholders Agreement" to be signed between the parties.

Query:

1. Whether under Karnataka/Maharashtra Stamps Act, the stamp duty is payable?
2. Please provide sec/rule/article ref and also % at which it is payable?

Best Regards,
Jyoti

[Soumitra Chawathe]

Dear Ms. Jyoti,

Answer to question no. 1

Stamp Duty depends on place of execution of agreement, whether Maharashtra or Karnataka. If there are two different dates, viz. Mumbai company signs on say 15th and Bangalore co. signs on 20th, then 20th would be the execution date and stamp duty applicable will be of Karnataka. But if officers of both companies sign at one place on the same date, then the agreement is deemed to have come to effect on that date at the place at which it was executed.

Answer to your question no. 2 depends on place of execution, as explained above. 


Contrary views solicited

Regards

CS Soumitra Chawathe
Pune

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[Roshan Dave]

Dear Soumitra,

i agree with you then what about stamp duty on allotment of shares . whether it will be place of board meeting or at registered office.

Regards,
Roshan Dave