Corporate Professionals Blog

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) t...

This note discusses the issues which have risen due to receipt of notice from the Collector of Stamps, Delhi, by companies registered in the National Capital Territory of Delhi, for demand of stamp duty on the share certificates issued by them as per the rates applicable in the National Capital Territory of Delhi. Mr. Abhishek Bansal Sr. Associate +919873191956 abhishek@indiacp.com The basic issues amongst corporates as regards these notices are outlined below: Place of levy of stamp duty - Registered Office of the Company or where the Board Meeting for issue of shares is held? Value on which stamp duty is to be charged and paid on issue of share certificates?