Today in this blog we will share the process of Stamp Duty payment on Share Certificate in Maharashtra. In this blog we will share in how many days stamp duty payment need to be done and how much stamp duty to be paid. Also in this we will discuss where we can pay the stamp duty.
What is the Importance of share certificate?
After formation of private or public limited company every company should issue share to the first subscriber. For issuing share to the first subscriber we need two documents –
- Letter of allotment
- Share certificate.
What is Letter of Allotment of Shares (Article 37) –
Letter of allotment should be on Rs 1 Adhesive Stamp paper. It is mainly an covering letter of the share certificate.
What is a share certificate?
Share certificate is a document that will give the ownership to the shareholder in the company.
In how many days share certificates shall be issued?
ANSWER: As per section 56 (4) of the Companies Act, 2013:
Share certificates shall be delivered within a period of 2 months from the allotment, in case of allotment of shares-
- Within a period of 2 months from the date of incorporation.
- Within a period of 1 month from the date of receipt of transfer and transmission.
- Within a period of 6 months from the date of allotment in case of the allotment of debenture.
In how many days stamp duty shall be paid to the revenue department for share certificate?
Instruments executed in State – shall be stamped before or at the time of execution or immediately thereafter on the next working day following the day of execution
Instruments executed out of State – may be stamped within three months after it has been first received in this State
How much stamp duty need to be paid for share certificate?
In Maharashtra its Re 1 for Every Rs 1000 Share Capital including Premium if any
What is the Mode of stamp duty payment in share certificate?
STAMPS TO BE USED –
Adhesive Stamp upto Rs 1 only. (Section 11).
In Case Duty Exceeding Re. 1 by Impressed Stamp Fixed by Proper Officer
Where to pay Stamp Duty for share certificate?
Adhesive Stamp – This is the revenue stamp that is available in the post office.
Impressed Stamp – For impressed stamp follow the below step by step procedure
Visit on https://gras.mahakosh.gov.in/echallan/
eSBTR
Select Article Code Should Be 17
What is the Penalty for not paying the stamp duty on share certificate?
Penalty will be 2% per month, maximum 4 times of stamp duty value. This penalty need to be adjudicated at collector office.
