TIME LIMIT FOR STAMPING ON ISSUE OF SHARE CERTIFICATE

[shilpa kasliwal]

Dear all,

As we know that we have to pay stamp duty as per the rates specified
in stamp act of respective state on the issue of share certficate.

Share should be issued within 3 months of allotment of shares.

What is the time limit for payment of stamp duty.Will it change if we
franked the certficates.....

Further if shares are issued on preimum what will be the Amount paid
up Share on share certifcate. Is it mandatory to show the premium
amount on share certifcates or in other words shares issued on face
value and premium has the same format of Share Certificate.

Plz clarify the above doubts.

With Best Regards,
Shilpa

[Sridevi B.N]

When you are issuing share certificate within 3 months by that time you are required to make stamp duty.

 

Stamp duty need to be paid for premuim amount also.

 

premium amount need not be mentioned in share certificate, share certificate issued as per face value of the share.

 

Regards,

Sridevi.B.N

 

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[shilpa kasliwal]

Thanks Sridevi.
in my opinion Stamp duty on premium is subject ot respective state
stamp act. as in rajasthan, stamp duty has to be paid on face value .

Extract of Stamp act is here:
One rupee for every one thousand rupees or a part thereof, of the
face value, of the Shares, Scrip or Stock.

Plz confirm my interpreation of act language.

With best regards,
Shilpa

[kameswara Rao Kappagantula]

y6es correct since the stamping on certificates is stamp duty is state subject the state Statues Entry is goverened the amount of stamp duty payable.

Kamesh

[BINDU MADHAVA]

With regard to time limit, if you not got the stamping within three months from allotment, you need get it adjudicated by respective District Registrar as required under Section 35 of Indian Stamp Act.
Otherwise it will be treated as instrument not duly stamped and inadmissible in evidence

[shilpa kasliwal]

Thanks Bindu.

Plz clarify what are the other effects/consequences of non-stamping except this those Share will not be treated as legal evidence ....

With Regards,

Shilpa

[Sanchit Ranade]

Dear All,

what is procedure for stamp duty payment for partly paid shares?

Do we need to pay stamp duty on whole amount or only for paid up amount?

Kindly assist. 

Sanchit