Stamp Duty on Issue of Share Certificates- Brief Study

Brief Note: In General Sense Shares Means A Portion Of A Larger Amount Which Is Divided Into No. Of People. In Legal Terms As Per Companies Act 2013, Section 84(2) ‘Shares’  Means A Share In The Capital Of A Company And Includes Stock. A Share Certificate Is A Certificate Issue By A Company To A Person Who Owns The Shares Of Such Company. Share Certificate Being An Instrument Requires Stamping As Per The Indian Stamp Act.

Stamp Duty On Issue Of Share Certificates: A Company Shall Issue Share Certificates Within 60 Days Of Allotment And Same Shall Be Stamped Within 30 Days Of Issue Of Share Certificates. As Per Section 21 Of Indian Stamp Act Stamp Duty Will Be Paid On The Issue Price Not On The Face Value. Stamp Duty Is A State Subject So Rate Of Stamping May Be Vary From State To State.

Conclusion: The End Of The Story Is As We All Know That Our Govt. Never Miss A Chance To Earn Any Income Coming From Different Sources Having Said That The Stamp Duty To Be Paid On The Share Certificates Issued By The Company To Its Shareholder Comes Into The Picture.