• Rate and mood of payment of share transfer duty of private limited company

In view of recent amendment in Indian Stamp Act which will come into force w.e.f. 9th January,2020 what will be the rate of share transfer stamp duty of share of a unlisted private limited company ? Whether adhisive stamps will continue? The private Limited Company is registered in west bengal
Asked 6 years ago in Business Law

Ask a question and receive multiple answers in one hour.

Lawyers are available now to answer your questions.

6 Answers

New rate is applicable for transactions in stock exchange for listed companies .

In your case stamp duty shall be at 25 paise per one hundred rupees of transfer value. 

Addessive stamps can be used and it must be crossed . You can pay by demand draft also. 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

The amendment will take effect for the details given therein.

You may go through the said amendment properly once again and if you don't find any changes to the existing laws then there can be no change in the previous procedures. 

T Kalaiselvan
Advocate, Vellore
89986 Answers
2493 Consultations

0.005% on present market value of shares. earlier it was 0.001%. Now duty will collect from buyer on behalf of State Government by the authorised stock exchange etc.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

Security (other than debenture): 

a) Issue of security other than debenture - 0.005% (currently the issuance is charged as per State schedule, which is generally @0.1%), 

b) transfer of security other than debenture on delivery basis - 0.015% , 

c) Transfer of security (other than debenture) on non delivery basis - 0.003%, 

d) other derivatives - 0.002% 

e) Govt. Securities- 0%,  

f) Repo on Corporate Bonds- 0.00001%.

 

Transfer of securities in demat form between beneficial owners was earlier exempted from stamp duty provisions under section 8A(c)(ii) & (iii) of the Act. The same has now been deleted and the exemption is only limited to transfer of securities from a person to a depository or from a depository to a beneficial owner. The rates proposed for stamp duty on transfer of securities are as follows: 

a)Transfer and re-issue of debentures - 0.0001% 

 

b)Transfer of security (other than debenture) on delivery basis - 0.015%

 

Adhesive stamps will continue

Prashant Nayak
Advocate, Mumbai
34520 Answers
249 Consultations

Stamp duty on Transfer

Transfer of dematerialized securities between beneficial owners was previously exempt from stamp duty provisions under section 8A(c)(ii) & (iii) of the Act. The same has now been deleted and the exemption is only limited to transfer of securities from a person to a depository or from a depository to a beneficial owner. While fixation of rates, rates charged by Maharashtra were taken as benchmarks as Maharashtra accounts for 70% of the total stamp duty collection in the country. The rates proposed for stamp duty on transfer of securities are as follows:

  1. Transfer and re-issue of debentures – 0.0001%
  2. Transfer of security (other than debenture) on delivery basis – 0.015%
  3. Transfer of security (other than debenture) on non- delivery basis – 0.003%

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

There are so many challenges currently in collecting and paying stamp duty as different stares have different regulations in regards to stamp duty.. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer