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swapnil dabke (company secretary)     10 August 2012

Stamp duty

Facts : ABC Pvt Ltd has 3 shareholders  A= 1000 shares, B= 1000 shares , C= 500 shares . ABC Ltd undergoes demerger which is approved by the court & it has cancelled its share capital. So post demerger share holding is as follows- A=500 shares, B= 500 shares & C= 250 shares. Now ABC Ltd wants to issue new share certificate bearing different distinctive nos for A, B & C. So is it necessary for ABC Ltd to pay stamp duty on these share certificates? keep in mind that these are not duplicate share certificates. Pursuant to reorganisation of capital structure post demerger company wants to issue these certificates to the shareholders.What is the possible way to tackle this situation? The registered office & Corporate office is situated in Mumbai.



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 2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     10 August 2012

 

There are some share transactions that qualify for relief that can reduce the amount of Stamp Duty you pay. And there are some that are exempt from Stamp Duty altogether.

If you think you qualify for relief you'll need to apply to HMRC so that they can confirm it, otherwise you'll have to pay the full amount of Stamp Duty.

Transactions that qualify for relief include:

  • transactions between related companies - known as group relief
  • some company reconstructions and acquisitions
  • purchases of shares by charities

swapnil dabke (company secretary)     11 August 2012

What is full form of HMRC? where its office at mumbai?


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