The relevance of the stamp duty starts from the time a share certificate is issued. It is essential for the company to make sure that the stamp duty has been paid well in advance before finally issuing the share certificate to its shareholders.
A share certificate is not considered valid until and unless the stamp duty has been paid on the certificate alongside a stamp on the paper suggesting confirmation of the payment. The stamp duty rate is described under your respective Stamp duty Act, which differs from state to state.
State-Wise Stamp Duty Charge on the Issue of Share Certificate
| State | Stamp Duty Charges |
| Andhra Pradesh | INR 0.30 for every Certificate |
| Arunachal Pradesh | INR 5.00 for every Certificate |
| Assam | INR 5.00 for every Certificate |
| Bihar | INR 10.00 for every Certificate |
| Chhattisgarh | INR 10.00 for every Certificate |
| Goa | INR 10.00 for every Certificate |
| Gujarat | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Haryana | INR 0.40 for every Certificate. INR 1.00 Revenue stamp that can be attached. |
| Himachal Pradesh | INR 0.40 for every Certificate. INR 1.00 Revenue stamp that can be attached. |
| Jammu & Kashmir (J&K) | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Jharkhand | INR 1.00 for every Certificate |
| Karnataka | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Kerala | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Madhya Pradesh | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Maharashtra | 0.1% of share’s value INR 1 for every INR 1000 that consists that amount of the premium, if any. |
| Manipur | INR 5.00 for every Certificate |
| Meghalaya | INR 2.00 for every Certificate |
| Mizoram | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Nagaland | INR 0.45 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Odisha (Orissa) | INR 1.00 for every Certificate |
| Punjab | INR 10.00 for every Certificate |
| Rajasthan | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Tamil Nadu | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Telangana | INR 10.00 for every Certificate |
| Tripura | INR 5.00 for every Certificate |
| Uttar Pradesh | INR 1.00 for every Certificate |
| Uttarakhand | INR 1.00 for every Certificate |
| West Bengal | INR 0.60 for every Certificate |
Rate of Stamp Duty in Union Territories
| Chandigarh | INR 0.40 for every Certificate |
| Dadra and Nagar Haveli | INR 1.00 for every INR1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
| Daman and Diu | INR 10.00 for every Certificate |
| National Capital Territory of Delhi (NCT of Delhi) | INR 1.00 for every INR 1000 or the part after that, regarding the value of the shares that consists of premium amount if any |
Stamp Duty on the Issue of Shares in Demat Form
The payment of stamp duty on the issue of share in Demat has now been significantly changed. As the collection of the stamp duty is done by depositories, clearing corporations and stock exchange. The stamp duty that is collected for the issue of shares needs to be submitted to the bank accounts of the State government of each district.
According to the latest report, even public organisations are now supposed to hold and transfer their funds to dematerialised securities according to the Companies Act 2013.
However, such implementations have not been made for private companies, therefore it is completely on the company to opt for the dematerialised security account.
Stamp Duty and Registration Charges in Other States
| Maharashtra | Stamp Duty in Maharashtra |
| Gujarat | Stamp Duty in Gujarat |
| Uttar Pradesh | Stamp Duty in Uttar Pradesh |
| West Bengal | Stamp Duty in West Bengal |
| Delhi | Stamp Duty in Delhi |
| Haryana | Stamp Duty in Haryana |
| Rajasthan | Stamp Duty in Rajasthan |
| Mumbai | Stamp Duty in Mumbai |
| Gurgaon | Stamp Duty in Gurgaon |
| Pune | Stamp Duty in Pune |
| Punjab | Stamp Duty in Punjab |
| Odisha | Stamp Duty in Odisha |
| Bangalore | Stamp Duty in Bangalore |
| karnataka | Stamp Duty in karnataka |
Stamp Duty on Allotment of Shares
Stamp duty on allotment of shares specifies the share out of a listed unappropriated share for an individual.
| S. NO. | Description | Information |
| 1. | Allotment with in the period of 60 days. | The allotment needs to be done with in the period of 60 days of the receipt of the application money. |
| 2. | In case the allotment is not done with in the period of 60 days, then the refund is settled in the next 15 days. | In case the allotment is not done with in the period of 60 days then the complete refund along with the entire application money will be refunded in the next 15 days. |
| 3. | In case the allotment is not done with in the period of 15 days. |
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Stamp Duty on the Issue of New Shares
| S.No | Details | Amendment as per Stamp Duty Act, 1899 | Amendment as per Stamp Duty Act, 1899 |
| 1. | Issuing of the Share Certificates | This issue of shares varies from district to district. | 0.005% applicable for all the districts. |
| 2. | Transferring Shares in physical form | 0.25% | 0.015% |
| 3. | Transferring Shares in Demat Form | 0% which was initially not charged on the stamp duty. | 0.015% |
FAQ’s about Stamp Duty on Share Certificate
Q1. How to revise stamp duty on transfer of shares?
Initially, the state government held the right for issuing stamp duty on the transfer of shares by following the guidelines stated by each state government.
Q2. What is the stamp duty on the issue of shares in India?
The stamp duty on the issue of shares in India is 0.005% on the property’s market value which is applicable for shares as well as the debentures.
Q3. Is stamp duty applicable on transfer of securities in Demat format?
In the start, the stamp duty was applicable on transferring shares physically but later the stamp duty under Demat was exempted.
Q4. What is the stamp duty on the transfer of unlisted shares?
The stamp duty on the issue of share in India is 0.005% on the property’s market value. The market value of the property is the amount that is mentioned in the allotment letter.
