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Stamp Duty

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Stamp Duty

DELHI STAMP ACT

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.

PROCEDURE FOR SUBMISSION OF STAMP DUTY IN DELHI:

  1. First Company will Allot Shares.
  2. Company will is issue Share Certificates within 60 days of Allotment of Shares.
  3. PREPARE DOCUMENTS:

After issue of shares, Stamp duty shall be paid to the exchequer of government within 30 (Thirty) days from issue of Share Certificates. Following documents shall be prepared:

  1. Covering Letter (duly affixed Rs 10/- Court Fee Stamp).
  2. List of Existing directors.
  3. List of shareholders.
  4. Share Certificate
  5. List of Allottees
  6. Certified Copy of Form-2/ PAS-3/ INC-7 with Challan.
  7. Certified Copy of Memorandum & Article of Association.
  8. Certificate of previous stamp duty paid, if any.
  1. SUBMISSION OF DOCUMENTS:

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 http://www.shcilestamp.com/estamp_share_issuance.html
  • 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.
  • Note: 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.
    1. PREPARATION OF DUTY CHART:
    1. Duty Chart is prepared by the department nearly about 15 to 20 days after submission of documents.
    2. Duty Chart includes Name of the Company, Address of the Company, Face Value of Shares issued, Premium Charged on Shares, Date of Issue, etc.
    1. PREPARATION OF CHALLAN:
    1. Challan has been issued by department in Triplicate on the basis of Duty Chart Made.
    2. The same Challan has to be paid at Specified Bank (List of Bank will be provide by Department) within 5-6 working days for smooth working of your file/case
    1. PAYMENT OF CHALLAN:

    After the preparation of Challan (in triplicate), you have to make payment of Challan (in triplicate) in Specified Banks within 5 – 6 Working Days, recommended.

    1. DEPOSIT OF CHALLAN:
    2. After submission of challan, we have to deposit a copy of challan with the revenue department.
    3. 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(A) Premium Amount(B) Total Value of Share Capital(C = A+B) Stamp Duty to be paid (C*0.10%)
    Rs. 1 Lac 0 Rs. 1 Lac Rs. 100
    Rs. 1 Lac Rs. 9 Lac Rs. 10 Lac Rs. 1,000
    Rs. 10 Lac 0 Rs. 10 Lac Rs. 1,000
    Rs. 10 Lac Rs. 90 Lac Rs. 1 Crore Rs. 10,000
    Rs. 1 Crore 0 Rs. 1 Crore Rs. 10,000
    Rs. 1 Crore Rs. 99 Crore Rs. 100 Crore

     

     

     

    Rs. 10,00,000

    STAMP DUTY NOT PAID WITHIN 30 DAYS OF ISSUE OF CERTIFICATE

    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.