Whether shares/securities issued by company or an issuer in demat form are chargeable to stamp duty under Indian Stamp Act? If yes then on what value it will be charged or how consideration would be calculated for the purpose of levy of stamp duty?
Issue No-1: Share issued by company or an issuer in demat form?
- Many times it was contended by the company or an issuer that the stamp duty payable only to the shares physically issued in the form of duly executed share certificate and
- not subjected to the payment of any stamp duty in the absence of any instrument in writing executed by the company.
Under the Indian Stamp Act, the stamp duty in respect of share issued by the company or issuer is payable in two account:
- At the time of issuing of securities payable by the Company or issuer and
- At the time of transfer of shares by the person holding title of ownership to the transferee, payable by the person executing the instrument of deed of transfer of share/ securities.