The following article stipulates stamp duty in four states, Maharashtra, West Bengal, Delhi, and Karnataka; The above approach is also followed in the case of the transfer of securities by the physical mode and by the custodians, where the tax is levied only against the consideration mentioned in the instrument, while, in the case of transfer of securities by the stock exchange, the tax is levied on the price which is thus traded. Since then, the government has instructed all state-owned enterprises to facilitate the dematerialization of their securities by introducing the new Rule 9A into the 2014 Prospectus and Allotment of Securities. Maintaining dematerialized actions for compulsory use will therefore result in revenue losses for the various national governments. 2. These shares and bonds should not be stamped, i.e. sticky and impressed, but the tax is payable. The newly inserted section, Section 9A, details the procedural benefits of the obligation due for dematerialized shares and bonds. The section consists of five (5) subsections, each dealing with separate issues. 8. If the payment is made in part or in increments, the transfer to the total market value must be made. In accordance with Section 21, the tax on each instrument is calculated on the market value of stocks and bonds with respect to stocks and bonds.
The Finance Act also clarified that no stamp duty is levied on the creation or destruction of securities in the event of stock splits, equity consolidations, mergers and acquisitions or similar business transactions, if it does not result in changes in economic ownership. In this regard, it should be noted that the issuance of securities under a merger and merger system will continue to increase stamp duty. 2. It may be based on delivery, or in some other way, but both with a different rate of duty. 1) any instrument carried out by the government or for or for this government, if the government is only required to pay the taxes collected for this instrument for this exemption; As a result, futures and options (equity and product) as well as other types of guarantees or contracts derived from their value from debt, equities or loans or price indices are also subject to stamp duty. A summary position on the tax liability, the amount to which the tax must be paid, as well as the date of payment of the tariff is indicated after the 34th, any instrument that is insufficient or not is inadmissible as evidence with any purpose, for example.B. For whatever purpose. B in a civil court. These instruments can be considered as proof of payment of the required amount of customs duties and a penalty of 2% per month on the amount of the defective tariff calculated from the date of execution.
However, the maximum sentence must not exceed four times the law in issue. 6. The tax is paid on the market value of the shares or bonds. I liked your contribution with a detailed analysis , I wanted to ask you how to make the right payment in case of issuing shares and transferring shares in Karnataka? Can we use electronic stamp paper? Since in Karnataka 4.7, we do not have a stamp to support and pay stamp duty, it is a matter of agreement between the parties.