Company law related with stamp duty
Querist :
Anonymous
(Querist) 07 November 2009
This query is : Resolved
A pvt. ltd. investment Co. has issued pref. shares and necessary stamp duty has been paid on issue of the share certificate. The Pref. shareholders have now decided to convert the said pref. shares into equity shares . Question can now arise is whether stamp duty is reqd. to be paid on new share certificate that will be issued on conversion of pref. shares for which the stamp duty was already paid.
Raj Kumar Makkad
(Expert) 07 November 2009
No. As the stamp duty has already been paid so there is no question of paying the same twice. The preference share means those were only allotted on preference basis containing some specific terms and now those are being converted on equity related shares so no question arises to re-pay any additional stamp duty thereon.
Querist :
Anonymous
(Querist) 09 November 2009
9-11-2009
Shri Raj Kumar Makkad
Many thanks for your instant reply to my query on whether stamp duty will be payable on equity shares to be issued on conversion of pref. shares
P.R. DHRUVA
