Guidance Note on Payment of Stamp Duty on Share Certificates in Haryana

1. TIME PERIOD FOR PAYMENT OF STAMP DUTY ON SHARE CERTIFICATES:

Pursuant to Section 56 of the Companies Act, 2013, Share Certificates must be delivered within a period of 2 months in case of subscribers to memorandum and allotment of securities and within a period of 1 month from the date of receipt of instrument of transfer in case of transfer of securities.

Every company is required to pay stamp duty on share certificates within a period of 30 days from the date of issue of share certificates.

2. PROCESS FOR PAYMENT OF STAMP DUTY:

A) Rate of Stamp Duty on allotment of Shares: Pursuant to The Indian Stamp (Haryana Amendment) Act, 2013 dated 1^st October 2013, the rate of stamp duty on share certificates is “One rupee for every one thousand or a part thereof, of the value of the shares, scrip or stock.”

B) Documents: Below documents are required for making application towards payment of stamp duty on share certificates:

a) Application Letter with Rs. 10 court fee stamp (format enclosed);

b) Certified copy of share certificate;

c) Certified copy of Form PAS-3;

d) Certified copy of board resolution for allotment of shares;

e) Certified copy of PAN card of the Company;

f) Memorandum and Articles of Association of the Company and Certificate of Incorporation;

g) Certified copy of list of directors;

h) Certified copy of list of shareholders and

i) Authority Letter in favour of the director/employee of the Company or any professional (CA or CS) who will visit the office to make application and to collect stamp duty certificate on behalf of the Company(format enclosed).

C) Submission of documents: Submit the above mentioned documentsat the office of “The Revenue Department, Mini Secretariat, District Court, Rajeev Chowk, Gurugram.”

D) Order for payment of stamp duty: After verification of documents, the department will issue an order for payment of stamp duty within 10 to 15 days.

E) Payment of Stamp Duty: Below is the step wise procedure to make the payment of stamp duty:

a) Logon to https://egrashry.nic.in/

b) Login as guest (user id: guest and password: guest)

c) Select Category and Purpose of Payment as “Other”;

d) Select department as “Revenue-FCR”;

e) Select Major Head as “0030 – Stamps and Registration Fees”;

f) Select Sub Major Head as “0030-02-800-98-51–Miscellaneous” and press submit button;

g) In next window, select district, treasury;

h) Select office name “0364-SDM Gurugram” in case share certificates are issued in Gurugram;

i) Select year, mention amount of stamp duty, PAN of the company, email id & mobile number;

j) Select mode of payment – Online/Offline;

k) Mention other details such as name and address of the company, particulars of share certificates, distinctive numbers of shares, etc; Press submit button;

l) Enter OTP sent to the mobile number and press Verify button;

m) Check the details carefully and make the payment.

n) After successful payment, a challan will be generated.

o) Submit the paid challan (in case of online payment)/Demand Drafts (in case of offline payment) at the office of Revenue Department, Mini Secretariat, District Court, Rajeev Chowk, Gurugram.

F) Certificate of stamp duty: The department will verify the challan/DD and issue the certificate of payment of stamp duty within 15 to 30 days.

G) Payment of stamp duty in wrong account: In case the wrong major head or office name is selected and payment is made in such wrong accounts erroneously, a separate application is to be made to the department for correction of details in their records.

Following documents are required to be submitted with the department to make correction in wrong details:

a) Covering letter mentioning the details of wrong payment (format enclosed)

b) Affidavit signed by the director and notarized by public notary in the stamp paper of Rs. 10/- (format enclosed) and

c) Indemnity bond signed by the director and notarized by public notary in the stamp paper of Rs. 100/- (format enclosed)

 After verification of documents, the department will make correction in their records and issue the stamp duty certificate within 15 to 30 days.

H) Visits required: Minimum4 visits are required to complete the process of collection of stamp duty certificate.

*****

(On the letterhead of Company)

Date:

To,

The Revenue Department
Mini Secretariat, District Court,
Rajeev Chowk, Gurugram,
Haryana

Subject: Payment of Stamp Duty on Share Certificate

Dear Sir/Madam,

With reference to the above mentioned subject, we would like to state that the Company has issued ________ (number of shares) equity shares of Rs. 10/- each by way of right issue/private placement in the following manner:

According to the provisions of the Stamp Act, the stamp duty on issue of shares in Haryana is Rs. 1/- (Rupee One only) per Rs. 1,000/- (Rupees One Thousand only).Therefore, the Company wishes to pay a consolidated stamp duty of Rs. _________/- (Rupees __________ only) by paying the same to the treasury office.

We request you to issue a consolidated stamp duty certificate.

Following documents are enclosed for your kind consideration:

1. Application with Rs. 10/- court fee

2. Certified copy of share certificate with distinctive number ______ to _______

3. Certified copy of Form PAS-3

4. Certified copy of board resolution

5. Certified copy of PAN card of the Company

6. Memorandum and Articles of Association of the Company and Certificate of Incorporation

7. Certified copy of list of directors

8. Certified copy of list of shareholders

Thanking you.

For ______________

__________________

Director

DIN:

******

(On the letterhead of Company)

To,                                                                                                                                                                                                                                 Date:

The Revenue Department
Mini Secretariat, District Court,
Rajeev Chowk, Gurugram,
Haryana

Subject: Authority for collection of stamp duty certificate

Dear Sir/Madam,

With reference to the above mentioned subject, we would like to state that the Company has issued ______________ (number of shares) equity shares of Rs. 10/- each by way of right issue/private placement.

According to the provisions of the Stamp Act, the stamp duty on issue of shares in Haryana is Rs. 1/- (Rupee One only) per Rs. 1,000/- (Rupees One Thousand only). Therefore, the Company wishes to pay a consolidated stamp duty of Rs. ______________/- (Rupees _________ only) by paying the same to the treasury office.

Therefore, we hereby authorize Mr. _________________, director/employees/CS or CS/ of M/s. ______________________, to collect the stamp duty certificate.

Thanking you.

For __________________

__________________

Director

DIN:

******

(On the letterhead of Company)

To,                                                                                                                                                                                              Date:

The SDM/Treasury Officer
Gurugram, Haryana

Sub: Change of Challan Head Account from _______________________ to _______________________ in Challan bearing GRN No: _________________ dated __________________.

Dear Sir,

The applicant submits as under:

1. That I ___________, Director, S/o _________, R/o _______________________ and I am a Director of “NAME OF COMPANY”, the Company registered under the Companies Act, 2013 having its Registered Office at ______________________;

2. That we had deposited a sum of Rs. __________/- (Rupees ________________ only) for payment of stamp duty towards issue of _____________ equity shares of Rs. 10/- each vide GRN No. ___________ dated _____________. However, the said amount was erroneously deposited in the major head ____________________;

3. That you are requested to change the above payment with __________________, for payment of the said stamp duty in Challan bearing GRN No: _______________ dated _________________.

4. It is therefore, most respectfully prayed that the above said changes may kindly be initiated in Challan bearing GRN No: ________________ dated ______________.

For the Applicant:

FOR _____________

__________________

DIRECTOR

DIN:

*****

(On the stamp paper of Rs. 10/-)

AFFIDAVIT

I, ______________, Director, S/o _________________, R/o ________________ hereby solemnly affirm and state as under:

1. That I am a Director of “name of company”, the Company registered under the Companies Act, 2013 having its Registered Office at ________________;

2. That we had deposited a sum of Rs. ______________/- (Rupees ______________ only) for payment of stamp duty towards issue of _________ equity shares of Rs. 10/- each vide GRN No. _____________ dated ________________. However, the said amount was erroneously deposited in the major head _________________;

3. That you are requested to change the above payment with ________________, for payment of the said stamp duty in Challan bearing GRN No: ___________ dated ______________.

4. That the applicant will be responsible in case any claim arising with respect to the said stamp duty in near future in any reparation arising out with respect to the said stamp duty fees.

5. That the applicant tenders his no objection/consent to change the major head from ________________ to _________.

DEPONENT

VERIFICATION:

Verified that the above statement of this affidavit are true and correct to the best of my knowledge and belief and nothing has been concealed therein.

DEPONENT

*****

(On the stamp paper of Rs. 100/-)

INDEMNITY BOND

I, _____________, Director, S/o _____________________ hereby solemnly affirm and state as under:

1. That I am a Director of “NAME OF COMPANY”, the Company registered under the Companies Act, 2013 having its Registered Office at ______________________;

2. That we had deposited a sum of Rs. ____________/- (Rupees ________________ only) for payment of stamp duty towards issue of ____________ equity shares of Rs. 10/- each vide GRN No. ______________ dated ______________. However, the said amount was erroneously deposited in the major head _________________;

3. That you are requested to change the above payment with __________________, for payment of the said stamp duty in Challan bearing GRN No: _____________ dated _______________.

4. That the applicant will be responsible in case any claim arising with respect to the said stamp duty in near future in any reparation arising out with respect to the said stamp duty fees.

5. That the applicant tenders his no objection/consent to change the major head from ____________________ to _________________, in Challan bearing GRN No: _______________ dated ______________.

WITNESS whereof, the indemnifier has set their and to this INDEMNITY BOND ON THIS ___________________, 2021 in the presence of witnesses.

INDEMNIFIER