Share Certificate Franking and Stamping

0
Reading Time: 4 minutes| (Last Updated On: April 16, 2019)

Share Certificate Franking and Stamping

A share certificate is required to be issued to every shareholder of a company in India, and it must be done within a period of sixty days from the date on which such shares have been issued. The payment of stamp duty of the share certificates must be made within 30 days of its issue in terms of section 3 of the Indian stamp act. Every state government has a separate stamp act, and the duty is levied by the state government which whose jurisdiction the share certificates were issued.  The companies act nowhere specifies as to where a company shall issue the share certificate. Hence we can issue shares anywhere in India where the board of directors meeting takes place approving the issue of share certificate.

Share franking is a process of embossing a stamp on the share certificate indicating the vale of stamp duty paid on the issue of share certificate. In general, the stamp duty to the government is paid in many ways some of the popular methods by which stamp duty is paid are as under

  1. By adhesive stamp, for example, revenue stamp, court fee, notary stamp, etc
  2. By way of stamp paper
  3. By way of issue of a certificate of stamp payment
  4. By way of Franking the document

Images of Share Franking

Bangalore (Karnataka) Mumbai (Maharashtra)
Bangalore Share Franking Mumbai Share Franking
© Copyright SETINDIABIZ PRIVATE LIMITED – 2019

Nowadays some state governments collect the stamp duty on the share certificate by way of issue of a certificate as proof of the stamp duty, for example, the state of Haryana, NCT of Delhi. Whereas the states like Maharashtra and Karnataka usage a machine for franking the share certificate with the appropriate value of stamp duty. Some state governments like UP usages revenue stamp as a method of payment of stamp duty.

Franking of Share Certificate:

Franking of the share certificate is one among several methods by way of which the stamp duty is paid on the share certificate, these are impressions made on the share certificate by using a Franking Machine, which is typically installed in the office of the sub-registrar or collector of stamp office of respective stamp. Usually, these machines can affix impressions of up to Rs. 999 on stamp paper. An application must be appropriately made to the office of the sub-registrar with a request letter for franking the share certificates.

Below table is an attempt to compile the stamp duty on share certificate for all state of India.

SI. No Name of State Stamp Duty of Share Certificate
1. Andhra Pradesh Thirty Paisa/Since 30paisa Stamp not available , Rs. 1 Revenue stamp irrespective of amount ,(on Folio)
2. Arunachal Pradesh Rs. 5.00 Revenue stamp irrespective of amount
3. Haryana Rs. 1 stamp irrespective of amount ,(on Folio)
4. Himachal Pradesh Forty Paisa/Since 40paisa Stamp not available , Rs. 1 Revenue stamp irrespective of amount ,(on Folio)
6. Karnataka Fifty Paisa irrespective of amount ,(on Folio)
7. Maharashtra Rs,1 for every 1000 Rs, or a part thereof of the value of the share, scrip or stock.
8. Manipur Not Applicable.
9. Nagaland Forty Revenue stamp irrespective of amount
10. Orissa One rupee Revenue stamp irrespective of amount
11. Punjab Ten Rupees [40 n.p. under act 34 of 1960 and 25 n.p. prior thereto irrespective of amount ,(on Folio)
12. Rajasthan One rupee for every one thousand or a part thereof of the value of the shares, scrip or stock
13. Tripura Not Applicable
14. Uttar Pradesh One Rupee (irrespective of face value market value)
15. NCT Delhih One rupee for every one thousand or a part thereof of the value of the shares, scrip or stock
16. Tamil Nadu Rs. 1 Revenue stamp irrespective of amount
17. Madhya Pradesh Not Applicable
18. Gujarat One rupee for every one thousand rupees or a part thereof of the value of the share, scrip or stock.
19. Bihar Not Applicable
20. West Benga Rs,1 for every 1000 Rs, or a part thereof of the value of the share, scrip or stock.
21. Jharkand Not Applicable
22. Chhattisgarh Not Applicable
23. J&K Not Applicable
24. Uttrakhand Not Applicable
25. Meghalaya Not Applicable
26. Goa One rupee for every one thousand rupees or a part thereof of the value of the share, scrip or stock.
27. Assam Not Applicable
28. Sikkim Not Applicable
29. Mizoram Not Applicable
30. Chandigarh Forty paisa Forty Paisa/Since 40paisa Stamp not available , Rs. 1 Revenue stamp irrespective of amount ,(on Folio)
31. Andaman and Nicobar Islands Not Applicable
32. Dadra and Nagar Haveli One rupee for every one thousand rupees or a part thereof of the value of the share, scrip or stock.
33. Daman and Diu Not Applicable
34. Lakshadweep Not Applicable
35. Punducherry Not Applicable

About Author

Team SETINDIABIZ, is a vibrant, updated and experienced people with professional qualifications such as CA, CS, CMA & Advocates. With our presence all over India, we are in a better situation to serve entrepreneurs in securing 100% compliance, all the time.

Leave A Reply