West Bengal Govt Imposes Stamp Duty on Orders of amalgamation, merger, reconstruction or demerger

[Ashok Pareek]

Corporate-Legal Updates

An Ashok Pareek Initiative

 

West Bengal Government Imposes Stamp Duty on orders of amalgamation, merger, reconstruction or demerger under Section 394 of the Companies Act, 1956:

 

The Indian Stamp (West Bengal Amendment) Act, 2012 has now received the presidential assent and has been notified by the West Bengal Government. The 2012 amendment to the Indian Stamp Act, 1899 as applicable in West Bengal has been brought into force with effect from 1^st February 2013.

 

Stamp duty on orders of amalgamation, merger, reconstruction or demerger under Section 394 of the Companies Act, 1956 has been prescribed as the higher of the following:-

 

1.       An amount equal to 2% of the true market value of the immoveable property located in the state of West Bengal of the transferor company; or

 

2.       An amount equal to 0.5% of the aggregate of the market value of the shares issued or allotted, in exchange or otherwise, and the amount of consideration paid by such transferor company for such amalgamation.

 

The Amendment Act and Notification are attached herewith.

 

with best regards,

 
Ashok Pareek

- Executive Director, SREI Capital Markets Ltd.

- Council Member, The ICSI

akpare...@yahoo.co.in

[Krishna Moorthy K]

Dear Mr.Ashok Pareek,

 

If I am not incorrect, there seems to a drafting error in the Point no.2 which says the amount of consideration paid by the transferor company for such amalgamation.    It should have been “the amount of consideration paid by the transferee company for such amalgamation since it is the transferee company which pays the consideration to the shareholders of the transferor company.

Please confirm if my understanding is correct.

 

Regards,

 

CS. K. Krishnamoorthy

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[Ashok Pareek]

Corporate-Legal Updates

An Ashok Pareek Initiative

 

MCA: Relaxation of additional fees and extension of last date in filing of various forms with the Ministry of Corporate Affairs (Circular No. 7/2013 dated 20^th March, 2013)

 

·         In continuation of the Ministry’s General Circular No: 03/2013 dated 08-02-2013 on the subject cited, the time limit for filing and relaxation of additional fee on forms has been extended till 31-03-2013, as detailed below:-

 

·         The scenario arising where the due date was falling before 17/01/2013, however, additional fee increased due to non-filing of documents between 17/01/2013 and 28/02/2013 (both days inclusive), the affirmative step based on the ticket raised by ROC and the additional fee mentioned therein, will be:-

(1) Change of additional fee applicable against respective SRN in the database;

(2) Regeneration of challan with revised additional fee;

(3) Extension of validity period of the challan till 7 days from the date of change;

(4) Sending an e-mail along with challan to the user requesting him to pay the amount as per the revised challan. (User may also download the challan from FO Portal.)

 

·         The other scenario where all the documents which have expired on or after 17-01-2013 due to non-submission/re-submission PUCL will be restored back. The validity of tickets raised till 24-3-2013 will be entertained and users will be given the time to file the documents within seven days of intimation to user. In case of failure to file the form within seven days, the form will be marked as NTBR and no further relaxation will be granted.

 

·         Further it is clarified that fee payable for forms on/till 16-01-2013 will remain payable along with additional fee and relaxation of any additional fee will be considered for forms on or after 17-01-2013.

 

·         All other terms and conditions of the General Circular No. 03/2013 dated 08.02.2013 will remain the same.

 

General Circular No. 03/2013 dated 08.02.2013 is available at the following link:

http://mca.gov.in/Ministry/pdf/General_Circular_03_2013.pdf

 

General Circular No. 07/2013 dated 20.03.2013 is available at the following link:

http://mca.gov.in/Ministry/pdf/General_Circular_07_2013.pdf