E-stamping is a computer-based application and a secure way of paying non-judicial stamp duty to the government.
There are two types of stamp duty which are collected by the states:
a) Stamp Duty paid under the Indian Stamp Act, 1899
b) Stamps used in payment of fees under the court-fees Act 1870.
Pursuant to Section 56(4) (Transfer and Transmission of Securities) of Companies Act 2013.
Every company shall, unless prohibited by any other law or any order of court, tribunal or other authority, deliver the certificates of all securities allotted, transferred or transmitted:
1. In the case of Subscribers to the Memorandum within a period of two months from the date of Incorporation; 2. In the case of any Allotment of any of its shares within a period of two months from the date of allotment; 3. Within a period of one month from the date of receipt by the company In the case of transfer of shares or as the case may be, of an intimation of transmission of securities; and 4. In the case of any allotment of debenture within a period of six months from the date of allotment.
In aforesaid mentioned provisions the stamp duty needs to be paid within 30 days from the date of issuance of share certificate(s).
According to the Indian Stamp Act, 1899 The provisions for payment of Stamp Duty is covered under Section 3 Instruments chargeable with duty and Section 10 how Duties to be paid under Indian Stamp Act, 1899 and the time limit of one month after execution of instruments for payment of stamp duty is covered under first proviso of section 32 of the Act.
Procedure Related to E- stamping of Share Certificate
Company Registration through creating a new registration fill necessary details to create the login.
Fill the application and attach the necessary attachments required
1: All the aforesaid mentioned documents attached are a copy of the original and true copy of records of the company.
2: All documents should be Digitally Signed by Company Director / Authorized Signatory of the Company.
3: If Stamp Duty is less paid then stamp duty payer is liable for penalty/punishment as per the Indian Stamp Act.
Lastly, the form shall be digitally signed by the Singing Authority that shall be either a Director or Certificate from practicing company secretary (will only be required if the company is not providing DIN with PAN of the Director).
After submitting the documents, reference number and challan will be generated then pay stamp duty amount as per the challan generated print the acknowledgment and collect the e-stamp certificate from any nearest stockholding branch.
After submitting a duly filled and signed form, The ACC (Authorised Collection Center) will enter the details into the system and a stamp certificate would be generated immediately in case of cash and in case of cheque/DD/Pay order/RTGS/NEFT/ Account to Account transfer only after realization of funds.
Consequences of delay in payment of stamp duty on issue of share certificate
Penalty up to 10 times of duty amount payable as per the Indian Stamp Act 1899 pursuant to section 35
The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Compliance Calendar LLP and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify and confirm the updates from the genuine sources before acting on any of the information’s provided hereinabove. Compliance Calendar LLP shall not be responsible for any loss or damage in any circumstances whatsoever.