Please find attached document.
Shah D J
Dear Sir Rajesh & Prafulla,
Recent days, it is the common technique to held Board Meeting out side the state in which Regd Off is situated to avoid huge stamp duty.
As Companies act, 1956 is silent on this issue, company can pay the stamp duty as per Tamilandu Stamp Act [As per query].
You rightly said that some companies can be held BM out the India. In such situation, you may choose the place, wherever the rate of stamp duty is lesser as the companies act is silent on the issue.
Other members views are solicited
Sheikhar Naik
Mysore
Mobile No.:+919008798930
Mobile No.:+919008798930
- show quoted text -
| | BINDU MADHAVA | 8/6/12 |
Place of execution is nothing but the place of affixing commonseal
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| | raj.9acs | 8/6/12 |
I agree with your opinion that recent days many of the companies following the same technique because the act is silent, simultaneously many cases are raising with the Finance Ministries of concerned states because its loss of revenue for that state.
Now a days we come to know that collector of stamps in Delhi and other states are issuing notices to companies for default in payment of stamp duty in share certificate on allotment of shares. Some of you must have come across this issue recently.
The following queries have been raised by Delhi state:
1. Companies pay the stamp duty while incorporating a company and also while increasing the A. Sh. Capital, then what else is the stamp duty payable on allotment.
So, in this cases the Delhi state have given permitted to pay stamp duty where the Board Meeting held but only satisfying the below conditions:
a. That Company should continuously held the Board Meeting in the other state in which the allotment has done
b. Some pecuniary benefit should be there for the allotted company from that concerned state.
c. Most of the members shall held in that allotted state.
Only if the above mention conditions satisfies by the alloted company then they can pay the stamp duty as per the allotted state.
Our Companies act says to be follow the indian stamp act, our Indian Stamp act says where the execution of documents takes plays according to that we need to pay stamp duty.
Now my query please try to solve this:
- Every state having its own stamp act if companies according to there benefit they follow this kind of techniques then what is the use of State Stamp Act, It is loss of the revenue to that State.
What I feel is being a Company Secretary we cant go for this kind of techniques to save the funds to Company, for the time being it may not effect but it may leads to legal actions on the Companies by the State Finance Ministries. But we can pay the stamp duty where the execution takes place but the burden of proof is liable with the Company only.
Members views are requested.
Regards,
On Monday, 2 February 2015 5:31 AM, "Taruna Kalra taruna.cs@gmail.com [CharteredSecretaries]" <CharteredSecretaries@yahoogroups.co.in> wrote:
Dear friendsWe visited to Court in Faridabad for payment of stamp duty in Haryana on Share certificates. The company is having regd office in Mumbai but held Board meeting in Haryana and issued share certificates in Faridabad only.Accordingly as per common practice, we need to pay stamp duty in Faridabad jurisdiction. But Collector of Stamps is asking for proof where it is written.I am unable to locate in Indian Stamp Act, kindly help in providing the relevant law.- - -With Warm RegardsTaruna Kalra & AssociatesCompany SecretariesDigital Signatures ProviderConsultant of Company Law - LLPs - Foreign Direct Investment - Service Tax - Drafting & VettingFirst Floor, Madhav Niwas,2 M/22 NIT Faridabad,Haryana-121001Mob: +91-9810090320, 91-7840041320
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Posted by: Dipak Shah <djshah1944@yahoo.com>
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