Stamp duty not paid for share certificate

[JYOTHI SHIVAYOGI]

Dear Members

 

Please let me know what are the consequences if stamp duty is not paid on Share Certificate issued?

 

Is the certificate invalid? If so how to make the default good.

 

In my case, funds has been received from foreign towards equity. They have alloted shares and even filed Form 2 with ROC and reported to RBI.

 

But the problem is they have issued Share Certificate without payment stamp duty?

 

So What is the remedy? How can we pay now?

 

Please please reply & help me.

 

Regards

 

Jyothi Shivayogi

[Sridevi B.N]

pay with penality. but it is default of the company.

 

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[Manpreet Singh]

Dear

Pls confirm that where Company has conducted its Board meeting in which resolution for allotment has made.

Rgds

On Tue, Jun 7, 2011 at 4:01 PM, JYOTHI SHIVAYOGI <jyothis...@gmail.com> wrote:

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[JYOTHI SHIVAYOGI]

Sir

 

Board meeting is conducted in India only during September 2010 and allotment is made in that meeting only.

 

Regards

 

Jyothi

[Manpreet Singh]

Dear

My concern is not with Country. My concern to ask was in which State because as per Stamp Act, Stamp duty has to be paid in the state in which document was executed and you have to follow the Stamp duty rate of respective State as in most of the states its Rs 1, 30 paise etc irrespective of value and in that case there will be no problem as you have to affix only Revenue stamp on Share Certificates. Like in Delhi its Rs 1 per thousand and let you issue 50 lakh shares of Rs 10 each then as per rate you have to pay stamp duty of Rs 50000000/1000= Rs 50,000 which is not possible to affix on Share Certificate, so method to pay is by way of Consolidated Stamp duty with Revenue officer.

Rgds

[esha sharma]

Very nice way of explaining the method of calculation of stamp duty Manpreet..Thank you......

[sajjala joshi]

Dear Manpreet,

 

May I ask what I consolidated Stamp Duty?

 

regards

Sajjala

[ekta kathuria]

Dear MAnpreet,

 

From so many days, am looking the concept of franking on share certificate.  Is there is any notification of delhi/ maharashtra govt, which states that Stamping by way of Franking is mandatory more than the prescribed amount.

 

Pls put light on this aspect.

 

Regards
Ekta

[JYOTHI SHIVAYOGI]

Dear Sir

 

Very nice way of explaining. It is Bangalore (Karnataka). Here also it is Rs.1/-, anyway as we have alloted only shares for Rs.50000/-

I can affix revenue stamps for Rs.50/- Right????

 

Thank you so much!!

 

Regards

 

Jyothi

[shilpa jain]

but in the cases the amount of stamp duty is big...like 50,000 or much how can we stamped already issued shares in last years...is there any way out....

With Best Regards,

CS Shilpa Sogani
B.COM(HONS.), M.COM, ACS, LLB(P)


       

[Srinivas N]

Ms. Jyothi,

You cannot affix revenue stamps in Karnataka.  In Karnataka affixing of stamps is not allowed.  It has to be only franked. 

Rgds,

[sajjala joshi]

Dear Srinivas,

 

If one want a Rupee 1/- stamp to be paid on each share transfer form (7B), so just for Rs.1/- one shall pay Rs.10/- franking fees?

 

regards

Sajjala

[JYOTHI SHIVAYOGI]

Dear Sir

 

Then how to go about this now! Is there is other solution.

 

Please suggest.

 

Regards

 

Jyothi

On Fri, Jun 10, 2011 at 2:44 PM, Srinivas N <amigo...@gmail.com> wrote: