Increase in Stamp Duty on Share Certificates and Other Instruments by State of Haryana

The Haryana State Government in order to curb the malpractices adopted by some of the Corporate holding their Board Meetings in Gurgaon or some other places in Haryana and executing the share certificates (i.e. instruments) over there, thereby evading the stamp duty on share certificates, and also finding the stamp duty on a lower side, has amended the Article 19 of Schedule 1A (as applicable to Haryana) of the Indian Stamp Act, 1899 (“Act”) vide notification dated 1st October 2013 in exercise of the power under Article 246 (3) read with Entry 63 of List II of Seventh Schedule of Constitution of India, and increased the stamp duty levied on the share certificates evidencing the right or title of the holder thereof, or any other person, to the shares in such certificates, equivalent to the stamp duty levied on such share certificates in the National Capital Territory of Delhi.

Mr. Abhishek Bansal
Sr. Associate
+919873191956
abhishek@indiacp.com
Further a new clause (d) to Article 5 has been inserted according to which the agreement giving power or authority to a promoter or a developer, by whatever name called, for construction on, development or, sale or transfer (in any manner whatsoever) of, any immovable property, shall also attract equivalent Stamp Duty as applicable to conveyance under Article 23 of the Schedule 1-A. In addition the Government has also increased the rate of stamp duty on the instruments issued and falling under Article 27 i.e. issue of Debentures, equivalent to the duty in the National Capital Territory of Delhi and under Article 48 i.e. on the power of attorney given in favour of other person to act on behalf of the first person.
The following table gives details about the rates of stamp duty applicable pre and post amendment dated 01st October, 2013:

Article No.
Particulars
Rate of Stamp Duty existing prior to 1st October 2013
Rate of Stamp Duty with effect from 1st October 2013
5 (d)
Agreement or memorandum of an agreement:
If relating to giving authority or power to a promoter or a developer, by whatever name called, for construction on, development or, sale or transfer (in any manner whatsoever) of, any immovable property
No provision in this respect was there before amendment.
The same duty as is leviable on a conveyance against Article 23 on the market value of the property mentioned in agreement.
19
Certificate or other document evidencing the right or title
Forty naye paise
One rupee for every one thousand or a part thereof of the value of the shares, scrip or stock
27 (a)
Debenture by endorsement or by separate instrument of transfer
0.05% per year of the face value of the debenture, subject to the maximum of 0.25% or rupees twenty five lakhs whichever is lower. 
0.05% per year of the face value of the debenture subject to the maximum of 0.25%
27(b)
Debenture by delivery
0.05% per year of the face value of the debenture, subject to the maximum of 0.25% or rupees twenty five lakhs whichever is lower. 
0.05% per year of the face value of the debenture subject to the maximum of 0.25%
48 (a)
Power of Attorney
One Rupee Fifty Paise
Three Hundred Rupees
48 (b)
Power of Attorney when required in suits or proceedings under the Presidency small cause Courts Act, 1882
One Rupee Fifty Paise
Three Hundred Rupees
48 (c)
Power of Attorney when authorizing one person or more to act in a single transaction other than the case mentioned in clause (a);
One Hundred Rupees
Three Hundred Rupees
48 (d)
Power of Attorney 
authorising not more than five persons to act jointly and severally in more than one transaction or
generally;
Three Hundred Rupees
Five Hundred Rupees
48 (e)
Power of Attorney
authorising more than five but not more than ten person to act jointly and severally in more than one transaction or generally;
Thirty Rupees
One Thousand Rupees
48 (g)
Power of Attorney in any other case
Three rupees for each person authorized
One hundred rupees for each person authorized

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