REGULATORY
Stamp Duty
Stamp duty is a duty that’s payable on certain specified instruments/documents of your business. Broadly speaking, when there is a conveyance or transfer of any movable or immovable property, the instrument or document affecting the transfer is liable to the payment of stamp duty.
Stamp duty in case of
Court/Tribunal orders involving M&A transactions
Since the order of the NCLT for the merging of two or more companies, or approving a demerger, has the effect of transferring property to the surviving / resulting company, the order of the NCLT may be required to be stamped. In most cases, the respective State Acts provide for a separate Article on Tribunal Orders in case of any merger/demerger, and accordingly the amount of the stamp duty payable would depend on the state-specific Stamp Law.
Stamp duty in case of
Transactions like slump sales
In the case of slump sale or asset sale, stamp duty varies from either 5% to 10% in the case of immovable property and 2% to 3% in the case of the movable property depending on the state to state.
Stamp duty in case of
Transfer of shares
Stamp duty in this case differs depending upon whether such securities are held in dematerialization form or otherwise. When the shares are to be transferred and they’re in the Demat form, the stamp duty is payable at the rate of 0.015% and where such shares are in physical form, the stamp duty is payable at the rate of 0.003% on the consideration. However, stamp duty on the transfer of debentures is different from the rates that are applicable on the transfer of shares. In case of transfer of debentures stamp duty is payable at the rate of 0.0001%.
