STAMP DUTY ON SHARES IN NCT OF DELHI
State Governments levy and collect stamp duty on issue of Share Certificates which fall within the sphere of State Legislature by virtue of the powers given to the State Governments through our Constitution (Entry 63 in the State List. A share certificate is a certificate given to the shareholder of the company in the form SH-1. Share certificate being an instrument requires stamping and Stamp duty on share certificate is a state-related matter where delay in payment of stamp duty appeals penalty.
Stamp duty is to be paid first at the time of incorporation on share certificate issued to the subscribers and thereafter on every further allotment of shares.
SHARE CERTIFICATE TIME LIMIT FOR ISSUANCE
As per the Section 56 of the Companies Act, 2013, the Share Certificate should be issued within two months from the date of incorporation or from the date of allotment.
SHARE CERTIFICATE TIME LIMIT FOR PAYMENT OF STAMP DUTY WITHOUT DELAY
The legal provisions for payment of Stamp Duty is covered under section 3 and 10 of the Indian Stamp Act, 1899 and the time limit of one month after execution of instruments for payment of stamp duty is covered under first provision of section 32 of the Act.
STAMP DUTY PAY AT THE TIME OF INCORPORATION
| Particulars | Amount of Stamp Duty Applicable For NCT of Delhi |
| A Company Having Share Capital | Stamp Duty for Spice form is INR 10/- |
| A Company Having Share Capital | Stamp Duty for MOA INR 200/- |
| A Company Having Share Capital | Stamp Duty for AOA 0.15% of Authorized Share Capital |
STAMP DUTY PAY AT THE TIME OF FURTHER INCREASE IN CAPITAL
When a company issues Share Certificates pursuant to fresh allotment of shares or stocks, Stamp Duty needs to be paid within 30 days from the date of issuance of Share Certificate(s). The Stamp Duty payable is INR 1/- for every INR 1000/- or part thereof of the value of the shares or stocks including the amount of premium.
STAMP DUTY ON TRANSFER OF SHARES
Stamp Duty is levied at the rate of 0.25% of consideration i.e. the amount to be paid is 25 paise for a share transfer of Rs. 100. If required, the total amount of stamp duty will be rounded off to next or upper 5 paise. Though there is no stamp duty on transfer of shares or debentures in a depository scheme.
Stamp duty will be paid on the issue price not on the face value. (e.g. in case of issue of security at premium, the stamp duty is payable on the issue price and not on face value of security.
PROCEDURE AND REQUIRED DOCUMENT FOR MAKING THE PAYMENT OF STAMP DUTY IN NCT OF DELHI
- Visit website https://www.shcilestamp.com/OnlineService/
- Create account on the above-mentioned website
- Submit the requisite documents like:
- Certificate of Incorporation, Memorandum and Articles of Association
- List of Allottees
- Copy of form PAS-3 along with the challan
- Copy of Board Resolution or Shareholder’s Resolution (should be digitally signed)
- Copy of Share Certificates issued etc.
- After submitting the documents, Reference Number will be generated and challan shall be generated within 1 month (approx.).
- Pay stamp duty amount as per the challan, print the acknowledgment and collect the e-Stamp Certificate from any nearest Stockholding branch.
- Upload the scan copy of e-Stamp Certificate. After scrutiny, Certificate of payment of Stamp Duty will be generated which can be downloaded from the status menu.
