Share certificate being an instrument requires stamping as per the Indian Stamp Act. Stamp duty on share certificate is a state matter and delay in payment of stamp duty attracts penalty. Stamp duty is to be paid first at the time of incorporation on share certificate issued to the subscribers and thereafter on every further allotment of shares.
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1. What do we mean by share certificate?
It is a document issued by the company to its shareholders stating that the holder of the certificate is the owner of number of shares mentioned on the certificate.
2. What is the time frame within which share certificate has to be issued by the company?
The company should issue the share certificate within a period of two months from the date of subscription or date of allotment.
3. What amount of stamp duty is to be paid on share certificates?
Payment of stamp duty on share certificate is a matter of state i.e. depends on the respective state stamp law.
4. Is stamp duty to be paid if shares issued in demat form?
Yes, stamp duty is required to be paid even on shares in demat form.
5. Within what time Stamping of Share Certificate has to be done?
Company shall pay the amount of stamp duty on share certificate within a period of one month from the date of issue of share certificate.
6. What is the mode of payment of stamp duty?
Mode of payment depends on respective states.