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October 8, 2021

Stamp Duty In Delhi For Share Purchase Agreement

Filed under: Uncategorized — Mark Baker @ 8:20 pm

The purpose of the Finance Act is not to change the way in which stamp duty is collected and collected in the event of the issue of securities, except through a stock exchange or a depositary, but has addressed one of the most controversial issues of the place of collection of stamp duty, particularly in the case of share certificates. where there is still a dilemma in paying stamp duty at the rate applicable in the State where the issuer`s registered office is situated or in the State where the instrument is performed. It is precisely this question that is now settled by levying the tax on the market value of the securities to be paid by the issuer in the State in which it has its registered office. For this purpose, market value means the price referred to in the instrument or counterparty. In addition, the law also clarified and fixed the obligation for one of the parties to pay stamp duty on the basis of the nature of the transactions carried out: on the share capital whose share capital or increase in share capital is subject (exemption p. 25 companies) A leasing contract is not treated as a leasing contract if there is no immediate loss – Atur India P Ltd., (1994) 2 SCC 497 It is therefore clear that shares and bonds, or any related documents used to issue, transfer, etc., are the instrument and are subject to stamp duty/tax. In addition, these documents are also published in Schedule-I, Empty Debenture Entry No. 27 and Securities (Shares) Empty Entry No. 56A. In accordance with Section 62(a) of Schedule 1-A of the West Bengal Stamp Act, the tax rate is 0.25% for the transfer of shares of a public limited company or other entity with or without consideration, i.e.: Twenty-five paises per one hundred rupees of the value of the share. 1.

Issuers holding shares and bonds shall be required to tax such newly issued shares and bonds. What is stamp duty on the share purchase contract and share transfer forms in Mumbai and Delhi In addition, a new subsection (3) has been added by the Finance Act 2019. In accordance with the newly inserted subsection, the parties to the transaction, in the case of the issue, sale and transfer of securities, do not have the freedom to choose the main document, but the instrument on which the stamp duty is paid in accordance with section 9A is considered to be a principal document and not a stamp duty (again re. (1) payable on other documents relating to the same transaction. 1. A contract of sale providing for the transfer of ownership is considered a “transfer” and is stamped accordingly. However, compensation for the tax paid shall be made at the time of performance of the carriage. 8. in the case of payment in part or in instalments, the tax on the total market value shall be paid on the day of the transfer.

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