➢ Rates of Stamp Duty: It’s now 0.005% on issue of Share Certificates and 0.015% on transfer of shares. It doesn’t matter whether shares are in physical or demat mode. ➢ The mechanism for payment of stamp duty on the demat securities has drastically been changed for demat shares.
From 1 July 2016 NSW stamp duty will no longer be payable on: … transfers of marketable securities – including shares in private companies and units in unit trusts (assuming land rich duty does not apply)
Earlier the stamp duty was to be charged only on physical transfer of shares i.e. on share certificate but the stamp duty on demat transfer was exempted. The finance Act has amended Schedule I of the stamp act to change the existing ones and add new ones in case of transactions related to transfer.
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.
Generally, you do not have to pay duty or lodge documents for a transfer of shares in a private or public corporation.
Duty will be paid on the market value of shares or debentures. 7. Buyer will pay the stamp duty.