Stamp duty on consolidation of shares_Under Companies Act 2013

[Khushi Jain]

Dear Learned Members,

whether stamp duty is required to be paid again when the new share certificates are issued consequent to split of shares or consolidation of share certificates or when the new share certificates are issued at the request of shareholder due to torn condition ??

Pls answer my query and also mention rule/regulation applicable to it.

Regards,

Khushi Jain

Practising Company Secretary

[Hitanshu Shah]

Dear Khushi Mam,

On Transmission:  As no consideration is involved, no Stamp Duty to be paid.

Other all Cases:  Stamp Duty applicable for transfer of shares is 25 paise for every 100 rupees or part thereof of the value of share.

Note: Stamps must be cancelled by crossing. If transfer form is following short for space, attached a blank paper with the form & fix the stamps on that blank paper.

 

Exemption: If transfer is on behalf of or in favour of Government, no stamp duty to be paid.

Hitanshu H. Shah

[Peer Mehboob]

I differ from the above opinion. In the instant case, there is no transfer or issue of shares. Stamp duty is paid on either issue of shares or on transfer of shares. Where duplicate share certificates are issued or new share certificates are issued consequent upon split of shares or consolidation of shares, stamp duty will not be paid because it has already been paid at the time of issue or transfer.

In the case of issue of duplicate share certificate or issue of new certificates on splitting of shares or consolidation of shares, only share certificates are issued after cancelling the earlier share certificate and making entry of the same in the Register of Share Certificates.

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[Khushi Jain]

Dear Hitanshu - I am not asking transmission of share ,my question is different.

Dear Peer Mahboob - As per Article 25 of Schedule 1A of Delhi stamp act, stamp duty of Rs 10/- is required in case of issuance of duplicate certificate.

Other member views are solicited.

Regards,

Khushi Jain

Practising Company Secretary

[Peer Mehboob]

Agreed. On counterpart or duplicate instrument, stamp duty has to be paid at Rs.10/- as per above referred provision of Delhi Stamp Act.