Stamp Duty in case of Merger
Guest
(Querist) 04 November 2008
This query is : Resolved
Plz advise:
Company A is amalgamating with Company B. A is in Gujarat whereas B in Chennai. A does not have any property in Gujarat. What would b stamp duty implications in this amalgamation? Tq.
Manish Singh
(Expert) 04 November 2008
where are the registered offices of the companies..?
Guest
(Querist) 04 November 2008
Company A's Refd Off in Gujarat and B's in Chennai.
Manish Singh
(Expert) 04 November 2008
who is the acquiree company? if a is the acquiree then you have to pay stamp duty duty applicable under the Stamp Act of Gujarat.
But if the acquiree company is B located in Tamil nadu then do check the act since I think there is no specific clause/entry under the sate stamp act which makes it mandatory for a company to pay stamp duty in cases of amalgamation/ share ytransfer. so you need not pay any stamp duty in such case since this point of law hasnt been decided yet.
Adv.Shine Thomas
(Expert) 11 November 2008
An amalgamation of Companies can take place after High Court's approval as per sec.394 of the Companies Act.Stamp Act varies from State to State.As per Bombay Stamp Act,rate of Stamp Duty is 10 per cent.The SC's decision in the Hindustan Lever Vs State of Maharashtra,in the absence of a specific entry in the respective Stamp Acts of different States in India,there can't be any stamp duty on amalgamation of companies in such States.
