• How to purchase share transfer stamp for Form SH-4

Hi,

I am in a process of executing a share transfer deed for which I need to purchase share transfer stamp to be pasted on Form SH-4. I have following questions:

1) Where can I purchase these share transfer stamp in Lucknow, Uttar Pradesh ?
2) I want to know if the share transfer stamp are common for all over India ?
3) Can I purchase the stamp in any state or city to use them on the Form SH-4 ?
4) If stamps are not common for whole country and they differ from state to state then the stamp should be purchased in the state of the transferor or the transferee ?
Asked 4 years ago in Business Law

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8 Answers

1. You can purchase e stamps as they are easily available from stockholding

2. And 3. No registrar wish to accept the vendors stamp of another place to avoid further litigation and co fusion over authentication

4. The stamp should belong to the same place where the property exist party can have their residential address of any place in India.

Amol Chitravanshi
Advocate, Delhi
279 Answers
1 Consultation

4.0 on 5.0

1. You may purchase the same from commisionary near the old High Court Campus.

2. They differ from state to state.

3. It must be purchased at the place where the same is to be executed, prefer purchasing the same from the state of transferor.

The Share Transfer Stamps are to affixed of the value of 0.25% for consideration of transfer on SH-4 (Instrument of Transfer ) and are required to be crossed.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Hi,

Share transfer stamps are available with the brackets or at the post office. The stamps are common all over the India and can be purchased from any where.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Stamp Duty on Transfer of Shares: The Share Transfer Stamps are to affixed of the value of 0.25% for consideration of transfer on SH-4 (Instrument of Transfer ) and are required to be crossed.

Let us understand with an Example: If you want to Transfer shares of Rs. 2 Lakhs for total consideration than you have affix share Transfer of Rs. 200000*0.25% = Rs. 500

Stamp Duty on Shares held in Demat Form: No Stamp is required to paid if Shares of Private Company are held in Demat Form.

According to the Indian Stamp Act, 1899, stamp duty is payable on instruments. An instrument has been defined as any document by which any right or liability is created or purported to be created, transferred, limited, extended, extinguished or recorded. Share transfer From 7-B is an instrument of transfer and stamp duty is payable when a transfer deed is executed for transfer of shares

1) you can ask any share trading agency company. Who daily purchase and sell the shares manually.

2) Yes it's common all over India.

3) Yes you can purchase stamps any where in India except Jammu and Kashmir.

4) Its common stamps , refer above answers.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

you can purchase share transfer form from authorised stamp vendor

2) stamp would be common

3) better purchase the stamp from your city only

4) purchase it in state of transferor

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

Dear Client,

Stamp Duty is fixed on transfer of share at the rate of .25 for every 100 rs.

1) Where can I purchase these share transfer stamp in Lucknow, Uttar Pradesh ? -- Easily available in court premises, Stamp vendors.

2) I want to know if the share transfer stamp are common for all over India ? -- except fees that also in selceted state.

3) Can I purchase the stamp in any state or city to use them on the Form SH-4 ? - Hmm, but try to buy from same city or place of business or residence.

4) If stamps are not common for whole country and they differ from state to state then the stamp should be purchased in the state of the transferor or the transferee ? -- From any one

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. You can approach a licensed stamp vendor or the treasury located within your Lucknow.

2. Yes.

3. You can affix the same

4. The stamp duty value may differ from one state to another and not the stamp itself.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

Dear Sir,

You may purchase non judicial stamps from local banks or lower authorized vendors in your State. The following information answered all your questions raised.

Shares are moveable property

The Section 82 of the Companies Act mentions that shares are movable property and transferable in the manner prescribed by the Articles of Association of the company. Shares of public limited companies are freely transferable. A duly executed and stamped transfer deed transfers ownership of shares by delivery of transfer deed along with share certificate.

In olden days blank transfers were prevailing and the instrument of transfer is never stamped by the executants i.e. (transferors). In this article the provisions of Stamp Act as well as Companies Act are analysed.

Legal frame work for levy/payment of stamp duty

a. Why stamp duty is collected: The main objective of Indian Stamp Act, 1899 is to raise revenue for the government. The instruments which are duly stamped as per Schdule-1 are admissible as evidence in a court of law. For this reason, stamping of document with correct value assumes significance.

b. Field of legislation: Vide 91 of Union list, the central government is empowered to collect stamp duty of certain instruments namely, bills of exchange, promissory notes, transfer forms for transfer of shares, debentures, bills of lading, proxies, letters of credit and receipts. State governments do not have any power to enact any laws for payment of stamp duty in respect of these instruments. Each state will prescribe stamp duty on those instruments which fall within its list and they are reflected in Schedule-1A.

c. How stamp duty is calculated: The instruments mentioned in Schedule -1 can be classified into three types. The first category refers to those instruments on which stamp duty as mentioned in the Schedule-1 is payable irrespective of the value mentioned in those documents. For instance: Memorandum of Association of a company, Notarial Act, etc. The second category attracts stamp duty on the basis of value specified in those instruments for eg, gift deed, lease deed. The third category attracts stamp duty on the basis the consideration mentioned in the documents or market value whichever is higher. For eg: Sale deed, transfer deed, etc.

d. How stamp duty is payable: Non judicial stamp papers are generally used for execution of legal documents such as sale deed, lease deed, etc. In some cases adhesive stamps are used for eg: Notarial acts, share transfer stamps. After the Telgi scam, franking of the value on the instruments has come into usage. Having addressed the above basic legal frame work on levy of stamp duty, now let us focus on the main issue of stamp duty on transfer of shares.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

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