Procedure of consolidated payment of stamp duty on share certificate

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Section 3 of the Stamp duty Act specifies the charging event for imposition of stamp duty is the execution of the document. Therefore, stamp duty on share certificate is payable based on where the share certificate is issued. Issue of share certificates is based on the place where the Board Meeting is held:

Steps of issue of share certificates

  • Send notice to hold Board Meeting for further allotment of shares.
  • Allot shares to applicants in board meeting.
  • Within 90 days of share allotment, the company must issue share certificates to allottees.

But share certificates can not be issued without prior payment of requisite stamp duty on the same as per the respective state stamp law.For example, rate of stamp duty in delhi is Rs. 1 for each Rs. 1000 value of shares.

  • Authorised signatory has to make an application to the concerned Collector of Stamps (Cos).
  • After due scrutiny of all papers/documents submitted with the COS, he will issue a challan mentioning therein amount to be paid in treasury.
  • After depositing asked amount, he will get confirmation from the Treasury Officer about the receipt of amount, if deposited amount is over and above Rs. 1,000.
  • After verification, Collector of Stamp will issue a certificate mentioning therein that the applicant company has paid the due consolidated stamp duty.

 

Documents required for Application for consolidated payment of stamp duty on share certificates

a)     List of directors. (Annexure A)

b)     List of Allottees.  (Annexure B)

c)     Certified copy of Board Resolution regarding allotment. (Annexure C)

d)     Certified copy of Copy of MOA & AOA of the Company. (Annexure D)

e)     Certified copy of Form 2 and its Challan. (Annexure E)

f)        Original Share certificate (Annexure F)

g)     Details as per format

h)     Application to COS

 

 Click below to download format of application

Details as per the prescribed format

 

Cover letter for Application

 

Annexure A- List of Directors

 

Annexure B- List of allottees

 

   Annexure C – Board Resolution