Stamp duty on Share certf. in Delhi

Dear Friend,

Yes objection by auditors is correct.

The rate of stamp duty on the issue of Shares in new Delhi is 0.1%  i.e. Rs. 1 on face value of Rs. 1000/- of the consideration including the amount of premium.

Can you can show your BM for allotment in UP or Haryana where the stamp duty is Rs. 1 irrespective of amount involved? This is the general practice followed by companies.  

Another option would be to present the share certificate to the appropriate authority subject to the provisions of section 113 (Time limit for issue of share certificate). Further tell me the date of allotment to suggest something keeping in view the provisions of section 113 of companies act, 1956.

Best Regards

Companies with registered office in Delhi have been following the practice of holding Board Meetings in UP/Haryana for issue of share certifcates and paying stamp duty accordingly. However, now these companies have started receiving notices from the Collector of stamps in Delhi asking them to provide details of share certificates issued so that stamp futy can be paid as per Delhi rules. If the Collector has his way, this would amount to enormous payments on account of stamp duty and/or penalties for certain companies who have issued shares in a big way. Does any one know of any action, own or concerted, being taken by companies against Collector's action? Would appreciate shareing of ideas by any one.
Thanks