Question: Who Is Responsible For Stamp Duty In Case Of Transfer Of Shares?

Is valuation required for transfer of shares?

As per Section 62(1) (c), for preferential allotment of shares, company has to follow rule 13 also.

Therefore, one can opine that valuation is mandatory for allotment of shares on preferential basis and report taken from registered valuer shall fulfill the purpose of all above Acts and laws..

Does transfer of shares attract stamp duty?

There was no stamp duty prescribed on the issue of shares (apart from the share certificate issued to the shareholder)….Stamp Duty on Transfer of Shares in Dematerialized Form.Sl. no.TypeStamp dutyii.Transfer of securities on delivery basis0.015%iii.Transfer of securities on non-delivery basis0.003%iv.Derivativesa.Futures (equity and commodity)0.002%10 more rows•Jul 19, 2020

Can we transfer shares without consideration?

As per Section 2(68) of Companies Act, 2013 Private Company restricts the transfer of shares and prohibit invitation to public to subscribe to any securities of the Company. … Transfer without consideration is Void: Share transfer without consideration is void.

Can shares be transferred online?

While transfer of shares from one demat to another can be done online, the more popular method is the manual transfer of shares from one depository to another. There are broadly two types of transfer viz. intra-depository transfer and inter-depository transfer.

How do you transfer unlisted shares?

Buy unlisted shares Investor has to transfer funds to our bank account by online or offline banking mode and provide demat account details. Shares will be delivered in demat account on the same day as payment is credited in bank account.

What is the procedure for transfer of shares?

A person who gives his signature, name and address as approval for transfer must see the transferor and the transferee sign the share/debentures transfer deed in person. The relevant share/debenture certificate or allotment letter with the transfer deed must be attached and sent to the company.

What is the stamp duty on share transfer?

Stamp Duty on Shares And DebenturesTRANSACTIONMECHANISMRATE OF DUTYTransfer of shares and debenturesOther than Stock Exchange and Depository (In case of Private Company)Shares Delivery Based: 0.015% Non Delivery Based 0.003% Debenture: 0,0001%Issue of shares and debenturesFor allShares 0.005% Debenture: 0.005%2 more rows•Oct 21, 2020

Is stamp duty payable on gift of shares?

What is stamp duty for Transfer of Shares as Gift. Stamp duty of 0.25% of total consideration amount and since there is no consideration value for the gift transfer, the stamp duty is calculated on the market value on the date of transfer in case of transfer of shares by way of gift.

Can shares be given as gift?

Shares owned by a person can be gifted to another person (relative or otherwise) by following a certain procedure. Since gifting constitutes a transfer, and the transfer is for no consideration, such a transfer can be carried out using the “off market transfer” mechanism.

Can shares be transferred as gift?

On successful verification of the gift transaction, the stocks are transferred from your demat account to the recipient’s demat account. … There will be no tax implication for the sender of the gift. However, there could be taxes on the receiver if the gift received is more than Rs 50,000.

How can I transfer my shares from one demat account to another?

How to transfer shares from one Demat account to another?Step 1 – Record the names of the shares that are to be transferred. … Step 2 – For the next step, the target client ID has to be recorded. … Step 3 – This is an important step as it involves the selection of the method of transfer.More items…•

Who is responsible for stamp duty on transfer of shares?

Who is liable to pay duty on transfer of shares? Section 29 of Stamp Act says that in the absence of an agreement to the contrary the expenses of providing the proper stamp shall be borne, in the case of transfer of shares of an incorporated company or other body corporate, by the persons executing the document.