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Stamp Duty of issue of share certificate in Mumbai

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Stamp Duty of issue of share certificate in Mumbai

Postby Aashish Jain » Wed Aug 08, 2012 11:10 am

Dear members,

I have two queries,

1. The Company held its Board meeting in Dubai. Allotment of share was one of the business of the meeting. Place of registered office of the Company is in Mumbai.

Question is: Now whether stamp duty is payable on issue of share certificate. Is place of Board meeting to be considered or place of registered office.

2. If stamp duty is payable, what is the rate of stamp duty in Mumbai as per Bombay stamp Act.

Kindly treat this as urgent...

--
Regards,
Aashish jain
B.Com, ACS Grad
--
Aashish Jain
Company Secretary
Aashish Jain
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Posts: 12
Joined: Thu Nov 03, 2011 1:32 pm

Re: Stamp Duty of issue of share certificate in Mumbai

Postby pca » Wed Aug 08, 2012 2:54 pm

1. Stamp duty depends neither on place of Board meeting nor registered office of the company. It depends upon place of issue of share certificates. If Board meeting is held in Dubai, but share certificates are issued from Mumbai, duty will be payable as per Bombay Stamp Act. (Some companies hold Board meetings in other States where duly is lower, just to have an additional proof to the effect that the share certificates were issued from that State only.)

2. As per Article 17 of Schedule to Bombay Stamp Act, stamp duty in the State is Re.1 for every Rs.1000 or part thereof of the value of shares.
PC Agrawal
Aurangabad (Maharashtra)
pca
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Re: Stamp Duty of issue of share certificate in Mumbai

Postby Aashish Jain » Fri Aug 10, 2012 6:39 pm

Dear Sir,

In that case, if I issue the share certificate in Dubai, then no stamp duty will be payable in India.!!!

And can revenue stamp be proper course for paying stamp duty if share certificates are issued in Mumbai.
--
Aashish Jain
Company Secretary
Aashish Jain
Trainee eMind !
 
Posts: 12
Joined: Thu Nov 03, 2011 1:32 pm

Re: Stamp Duty of issue of share certificate in Mumbai

Postby pca » Sat Aug 11, 2012 9:46 pm

1. Bombay Stamp Act provides that differential stamp duty will be payable when the instrument (i.e. share certificate) is brought in the State from outside the State where lower duty is payable.

2. Revenue stamp can be used for payment of stamp duty.
PC Agrawal
Aurangabad (Maharashtra)
pca
Knowledge Guru
 
Posts: 1112
Joined: Sun Jul 08, 2007 9:35 am
Location: Aurangabad (Maharashtra)

Re: Stamp Duty of issue of share certificate in Mumbai

Postby Aashish Jain » Mon Aug 13, 2012 10:54 am

Hi,

Thanks for the reply.

1. But the shareholders are non resident. They never come to India. Hence the question of differencial duty may not arise.. Am i Right..???

2. Revenue stamp: can you quote the section or any provision.


--
Regards,
Aashish jain
B.Com, ACS Grad
--
Aashish Jain
Company Secretary
Aashish Jain
Trainee eMind !
 
Posts: 12
Joined: Thu Nov 03, 2011 1:32 pm


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