Description
Stamp Duty rates on share certificate and other securities.
- What are the applicable Rates of Stamp Duty on the Issue of Share Certificate, Transfer of Share Certificate, Debentures, and other Securities?
The Stamp Duty rates are defined under Schedule I of Finance Act 2019 and extract of matters concerning with stamp duty on securities are specified below:-
| Transactions | Rate of Stamp Duty |
| 27. DEBENTURE—[as defined by section 2(10A)]
(see section 9A and 9B) |
|
| (a)in case of issue of debenture; | 0.005% |
| (b) in case of transfer and re-issue of debenture. | 0.0001% |
| 56A. SECURITY OTHER THAN DEBENTURES (see sections 9A and 9B as given below*) | |
| (a) issue of security other than debenture; | 0.005% |
| (b) transfer of security other than debenture on delivery basis; | 0.015% |
| (c) transfer of security other than debenture on non-delivery basis; | 0.003% |
| (d) derivatives—
(i) futures (equity and commodity) (ii) options (equity and commodity) (iii) currency and interest rate derivatives (iv) other derivatives |
0.002% 0.003% 0.0001% 0.002% |
| (e) Government securities | 0% |
| (f) repo on corporate bonds | 0.00001% |
Stamp Duty payable to whom?
| Transactions | Payable to |
| 91. Bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts. | Central Government (List I- Union List) |
| 63. Issue of Share (Equity Share / Preference Share) | State Government (List II- State List) |
| 44. Stamp duties other than duties or fees collected by means of judicial stamps | Both (List III- Concurrent List) |
Stamp Duty Rate on transfer of equity shares or preference shares in physical form
In case of transfer of shares on delivery basis in physical form, stamp duty @0.015% would be payable. Since, transfer of shares is the Central Government Matter, hence same rate will be applicable all over India.
Stamp Duty Rate on issue of equity shares certificate or preference shares certificate
In case of issue of equity shares certificate or preference shares certificate, stamp duty @0.005% would be payable. However, issue of share is the State Government matter and process for the payment and stamp duty rate will be very state to state.
Stamp Duty Rate on issue and Transfer of Debenture certificate
In case of issue and transfer of Debenture Certificate, in case of issue, stamp duty @0.005% would be payable and in case of Transfer, stamp duty @0.0001% would be payable. Since transfer of debenture is the Central Matter hence same rate will be applicable all over India.
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