STAMP DUTY ON ISSUE OF SHARE CERTIFICATES
STAMP DUTY ON ISSUE OF SHARE CERTIFICATES BACKROUND: 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. § The Share certificate must bear stamp duty as per State Stamp act. § 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. §