As per Section 3 of Indian Stamps Act 1899, Every Share Certificate must bear the necessary stamp duty as per the Stamp Act of the respective State/ Union Territory from which Certificate is issued. The rates of stamp duty can be obtained with reference to relevant article of given State Act.
According to Companies Act, 2013,- “Every person whose name is entered as a member in the register of members shall be entitled to receive share certificate within two months after allotment (or within such other period as the conditions of issue shall provide).”

According to Indian Stamp Act, 1899, the Company shall pay the stamp duty within thirty days after the Issue of Share Certificate.

ü  The Share certificate must bear stamp duty as per State Stamp act. Stamp duty can be paid by putting adhesive stamps and cancelling the same. In case of issue of large number of shares, stamp duty can be paid in lump sum and this fact should be mentioned on the share certificates.
ü  In such cases, putting adhesive stamp on each share certificate is not necessary. Stamp duty is payable even if security is issued in dematerialized form.
*      Stamp duty is payable on issue price and not on the value of security.
*      Stamp duty on share certificate is State subject, but Stamp Duty on Debenture Certificate is a Union Subject.
Issue of Share Certificate from other State:
ü  Stamp duty payable on share certificate is lower in some states than other. It is ‘higher in Maharashtra’ and probably ‘Lowest in Delhi’.
ü  Some companies having registered office in Maharashtra ‘Issue’ shares from other state by holding Board Meeting in that State.
ü  BUT Companies Act nowhere specifies that share Certificates must be ‘ Issued’ from “Registered Office only”. So now companies have to pay Duty on issue of Share Certificate as per State where Registered Office of Companyis situated.
 Stamp Duty on Issue of Duplicate Share Certificate:
One issue is whether stamp duty is payable again when a duplicate or split share certificate is issued. Section 3(a) of Indian Stamp Act states that every instrument mentioned in the Schedule I of Indian Stamp Act which, not having been previously executed by any person, is executed in India; shall be chargeable with stamp duty of the amount indicated in Schedule I.

As per Delhi Stamp act, stamp duty shall be paid on “CERTIFICATE OR OTHER DOCUMENT evidence the right or title of the holder thereof, or any other person,   either to any shares, one thousand stock in or of any incorporated Co. or other body corporate or to become proprietor of shares, scrip or stock in or of any such Company or body.”

Rate of the said stamp duty in Delhi shall be “One rupee for every one thousand, or a part thereof, of the value of the shares, scrip or stock including the amount of PREMIUM”.

Penalty shall be 1 to 10 times depending upon the order being passed by department. However penalty can be lower than 1 time as decided by authority.


Earlier Companies was required to submit document physically. But presently Revenue Department Delhi has changed the method. Now all the required documents will be file online as per process given below:
A.    First Company wills Allot Shares.
B.     Company will is issue Share Certificates within 60 days of Allotment of Shares.
After issue of shares, Stamp duty shall be paid to the ex-chequer of government within 30 (Thirty) days from issue of Share Certificates. Following documents shall be prepared:
A)     Covering Letter (duly affixed Rs 10/- Court Fee Stamp).
B)     List of Existing directors.
C)     List of shareholders.
D)    Share Certificate
E)      List of Allottees
F)      Certified Copy of Form-2/ PAS-3/ INC-7 with Challan.
G)    Certified Copy of Memorandum & Article of Association.
H)    Certificate of previous stamp duty paid, if any.


At the time of issue of shares, Stamp duty shall be paid to the exchequer of government within specified period. Above discussed documents shall be prepared & submitted to Revenue department Delhi online within 30 days of Issue of Share Certificates..
The Department of Revenue, Delhi has launched "On-line Stamp duty Payment on Issuance of Shares". This facility is to be utilised by Companies towards Payment of Stamp Duty on issuance of New Shares. This facility implemented for the Jurisdiction of NCT Delhi only.
§  First Step company will create log in of the Company on

§  Companies after taking login will populate the relevant details of the New Shares issued against which stamp duty payment to be made.

§  Submit all the documents online on the portal.

Certified that all the aforesaid mentioned documents attached are copy of original and true copy of records of Company and should be digitally signed by Company Director/Company secretary/Chartered accountant.


   i.      Duty Chart is prepared by the department nearly about 15 to 20 days after submission of documents.
 ii.      Duty Chart includes Name of the Company, Address of the Company, Face Value of Shares issued, Premium Charged on Shares, Date of Issue, etc.


         i.            Challan has been issued by department in online.
       ii.            The same Challan has to be paid at Specified Bank (List of Bank will be provide by Department).

After the receipt of Challan, Company have to make payment of Challan in Specified Banks.


         i.            After submission of challan, we have to deposit a copy of challan with the revenue department.
       ii.            After verification of challan (after 20 days of depositing of challan), department issue a certificate of Stamp duty paid (1 day to 100 days).

Face value of Share Capital
Premium Amount
Total Value of Share Capital
(C = A+B)
Stamp Duty to be paid
Rs. 1 Lac
Rs. 1 Lac
Rs. 100
Rs. 1 Lac
Rs. 9 Lac
Rs. 10 Lac
Rs. 1,000
Rs. 10 Lac
Rs. 10 Lac
Rs. 1,000
Rs. 10 Lac
Rs. 90 Lac
Rs. 1 Crore
Rs. 10,000
Rs. 1 Crore
Rs. 1 Crore
Rs. 10,000
Rs. 1 Crore
Rs. 99 Crore
Rs. 100 Crore
Rs.  10,00,000

The procedure is same as procedure for submission of Stamp Duty  on time(as discussed in previous point) but the only difference is that we have to pay penalty i.e. 1 to 10 times depending upon the order being passed by department.

A notice is being sent by department to the Company if it fails to pay the Stamp duty within Time Limits.


Whether stamp duty will be paid on issue of share Certificate in dematerialized form.

Yes it is mandatory to paid stamp duty on issue of share Certificate in dematerialized form.
Value on which Stamp Duty payable on Share Certificates?

As per Section 21 of Indian Stamp Act,
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.)
Place from where Share Certificate can be issued by the companies under Companies Act, 2013.

Companies Act nowhere specifies that share certificate must be ‘Issued’ from registered office only.
Jurisdiction over Share Certificate or Debenture Certificate?

Stamp duty on Share certificate is State subject, But
Stamp duty on Debenture Certificate I Union subject.
Whether stamp duty will be payable again when duplicate or split Share Certificate is issued.
As per Regulation 25 of Schedule I of Indian Stamp Act, stamp duty payable on counterpart of duplicate of an instrument is maximum One Rupees. Hence stamp duty of “ONE RUPEES” should be sufficient.
Is Stamp Duty payable on Transfer of Shares?

There is No Stamp Duty payable on Transfer of Shares.
If a Company having registered office in Delhi & had Board meeting outside Delhi regarding Issue of Share Certificates, then what is the applicability?

Legally & technically Speaking, Stamp Duty should be applicable as per the law of that state & No duty is payable under Delhi stamp Act. However this view is not currently accepted by department. So if registered office in Delhi then no matter where Board Meeting will be held for issue of share certificate. Company has to pay stamp duty
Is Stamp Duty applicable on premium also?

Yes, Stamp duty is payable on Face Value including premium.
What is the no. of visits for getting Stamping done with department?

You have to visit min. 8 times if your case is of penalty i.e.
            (a) Submission of documents.
            (b) For taking date of Hearing.
            (c) For Hearing of Your case.
            (d) For taking challan.
            (e) For Deposit of challan at Specified Banks.
            (f) For submission of copy of Challan to department.
            (g) For Verification of Challan.
            (h) For taking Certificate of Stamping.


  1. Sir,
    We are suppose to pay stamp duty on Share Transfer Form.

    For Eg: As per Maharashtra State Stamp duty act we are suppose to pay 0.25% of total consideration as stamp duty on Share Transfer Form

  2. You actually make it look so easy with your performance but I find this matter to be actually something which I think I would never comprehend. It seems too complicated and extremely broad for me. I'm looking forward for your next post, I’ll try to get the hang of it! Webtalk SocialCPX

  3. Great share!

    I love this bucket list and you know you're right. sand blasting machine manufacturer. We all have the same amount of hours in a day so put them to good use. We all have to start somewhere and your plan is perfect. I understand the way of the attractive to the customer with the products sand blasting machine.

    Sand blasting machines like shot blasting machine, sand blasting machine, and grit blasting machines, Wood Working Machinery Dust Extraction unit, Abrasive Blasting Media and various others. Keep it works and share with us your latest information. My time will come but I know I'm on the right path.

    They are similar to small communities that you own - check them out if you haven't already. It's all got a lot better than before!t. Value that list of thousands but I'll get there.

    Thanks for sharing. Have a nice week ahead.
    Visit at :

    Also check
    portable shot blasting machine
    portable sand blasting machine
    sand blasting cabinet
    grit blasting cabinet
    shot blasting cabinet

    Ankit Manawat.


Post a Comment

Popular posts from this blog

Declaration of Commencement of Business - Series 487

Vacancy Updates (Through Google Form) | Dated: 20-August-2020