Stampduty payable on share certificate
Smita Katake
(Querist) 17 January 2011
This query is : Resolved
As per the Companies when a company increases its share capital,it pays stampduty to Government.
When company makes allotment of share out of the increasedshare capital and issue share certificates to allotees and pays stampduty on share certificate.
My question is that when the company has already paid stampduty on its share capital at the time of increasing or incorporation,
so why should it pay stamp duty on share certificates of shares issued out of the same capital for which duty has already been paid??
Is there any answer, caselaw,book which will solved the question ?
Ajay Bansal
(Expert) 17 January 2011
The stamp duty you are saying on share certificate is a Tax on account of transfer of share from the account of freash share-holder.The stamp given by a company to increase its capital has quite different perview then allotment/transfer of a share to any other person then company itself.
Ajay Bansal
(Expert) 17 January 2011
The stamp duty you are saying on share certificate is a Tax on account of transfer of share from the account of company to the account of freash share-holder.The stamp given by a company to increase its capital has quite differant perview then allotment/transfer of a share to any other person then company itself.
