As per Indian stamp act, every share certificate must bear the necessary stamp duty. 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.
Stamping is a tax on the documents executed in India, share Certificates comes under the definition of Instrument, hence it is liable to be stamped as per the government specifications and stamping provides the legality to the document.
IN HOW MANY DAYS STAMPING OF SHARES TO BE DONE?
As per Indian stamp Act, within 30 days of issue of share certificates, stamp duty shall be paid.
WHAT ARE THE PENALTIES IN CASE OF NON PAYMENT OF STAMPING OF SHARES?
The superintendent has the power to put penalty, 10 times of the amount of stamp duty. Also If the matter got delayed due to any reason and an application filed is beyond 30 days then the matter will directly be called for hearing.
1. Allotment of shares
2. prepare documents
3. submission of documents
4.Issue of Challan.
5. Deposit of challan
6. Approval from department.