Does a stock transfer form need to be stamped?
Once a Stock Transfer Form has been completed you need to do the following: … Put the completed Stock Transfer Form (Stamped if applicable or unstamped if Stamp Duty not payable) with the company books. Cancel the old share certificates. Issue new share certificates.
The following are step-by-step guide for the transfer of shares in a company:
- Step 1: Secretary to prepare board resolution & Form 32A. …
- Step 2: Original share certificate to be returned to secretary. …
- Step 3: Stamping on Form 32A & payment of stamp duty. …
- Step 4: Issuance of new share certificate to new shareholder.
Pay the Stamp Duty amount using Net Banking/Debit Card/ Cash/ NEFT/ RTGS. collect the e-Stamp Certificate from the nearest branch of Stockholding in Delhi by producing the printed acknowledgement at the counter. Certificate can be downloaded from the status menu online.
The present stamp duty rate for transfer of share is 25 paise for every one hundred rupees of the value of the share or part thereof. That means for shares valued Rs. 1,050, the stamp duty will be Rs. 2.75.
What is a transfer stamp?
A transfer/stamp tax is essentially a transaction fee imposed on the transfer of title to property. Transfer taxes are not considered deductible real estate taxes. 0.
(5) The directors may refuse to register the transfer of a share, and if they do so, the instrument of transfer must be returned to the transferee with the notice of refusal unless they suspect that the proposed transfer may be fraudulent.
A proposed share transfer must be processed or rejected within two months of receipt. Where a transfer is rejected, the reasons for refusal should also be provided within that timescale. While reasons should be provided, there is no need to provide minutes of directors’ meetings as evidence of the reasons stated.
In no existing shareholder is interested, then shares of the Company can be freely transferred to an outsider. Powers of Directors to refuse: The Director may have the powers to refuse registration of transfer of shares under certain circumstances – prescribed in the Articles of Association.
An application must be appropriately made to the office of the sub-registrar with a request letter for franking the share certificates.
In the case of dematerialized shares the responsibilities of collecting stamp duty in case sale/transfer of shares are on the stock exchange, clearing corporation, and depository, as the case may be. When the physical shares are transferred, stamp duty is paid in form of adhesive stamps affixed on SH-4.