NEW DELHI: The Delhi revenue department clarifies that a 0.1% stamp duty on share issuance by Delhi-based companies is imposed under Schedule IA of the Indian Stamp Act, 1899, according to officials. Also, the stamp collector of the Delhi government has directed depositories NSDL and CDSL not to collect the stamp duty applicable to Delhi for the issuance of shares.
A process has been made available through the Stock Holding Corporation of India Ltd (SHCIL) portal for paying stamp duty on share certificates, with the stamp collector’s office issuing certificates confirming payment. “Under Schedule IA of the Indian Stamp Act, 1899, with certain amendments specific to the NCT of Delhi, and in accordance with Section 3 of the Act, Article 19 prescribes a stamp duty rate of 0.1 per cent of the value of shares,” a recent circular said.
Companies with a registered office in the NCT of Delhi must pay stamp duty on the issuance of shares at 0.1 per cent of the value of shares as applicable to the NCT of Delhi, officials said. All listed and unlisted companies with registered offices in Delhi must apply for adjudication of stamp duty for issuance of shares, irrespective of whether such certificates or documents are executed in physical or digital (DEMAT) form.
Officials noted that National Securities Depository Limited (NSDL) and Central Depository Service Limited (CDSL) currently charge a rate of 0.005 percent for share issuance. In the letter to NSDL and CDSL last month, the stamp collector stated that CDSL had failed to submit any letter or order in which the Delhi government authorised them to collect stamp duty at the rate of 0.005 percent on its behalf.
