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Share Pledge Agreement Stamp Duty

In accordance with Section 3 of the Indian Stamp Act of 1899, any instrument listed in Schedule-1, which is subject to another provision of the Act, must be subject to stamp duty under the following conditions. Article 6, paragraph 2 of Schedule 1 of the Bombay Stamp Act states: that stamp duty on the instrument that applies a mortgage agreement on personal property where such an assumption has been granted as collateral for its repayment of advanced money or by existing future loans or liabilities- The Stock Exchange, clearing corporation or depository (`collection agent`) must not use the tax thus levied on stamps for other purposes and be transferred to the relevant state government at the same time as interest. Subsequently, the collection centre submits to the relevant government a monthly declaration containing all information relating to the stamp duty collected, details on the transfer of stamp duty and information on breaches. The central government has made available a format for the return of the stamp duty recovered (monthly/annual). It is clear from the above that the existing stamp duty collection procedure will be changed and that the security rate mentioned in the revised I-list has been made universal throughout India, which will limit the flexibility for purchases and tariff circumvention. This practice is now stopped because the uniform rate is declared throughout India and the stamp duty thus collected is distributed among the states where the buyer/allottees is domiciled. 5.2 In addition, any public servant may seize these mislabeled instruments if they find out. These seized instruments are to be sent to the collector, who then determines the amount of tax and, if necessary, the penalty to be paid. Each part to an instrument can also submit suo moto an evaluation instrument by the collector u/s 31. The Stamp Board determines the market value of the property by referring to an annual price statement (commonly known as Stamp Duty Ready Reckoner) that gave the market values of various properties in Mumbai. The recconer divides the land into different categories such as developed land, undeveloped land, housing units, industrial/office units, businesses, etc., and determines its market value. Collection: Stamp duty on the sale of securities, the transfer of securities and the issuance of securities is authorized by the company of the stock exchange or the clearing company or by the custodians (authorized collectors) on behalf of the government.

The central government has also advised the Clearing Corporation of India Limited (CCIL) and the Registrars to act as collection agents for the issuance and/or transfer of shares. It should be noted that the issuance or transfer of securities was historically subject to stamp duty, only after the introduction of the Conservation Act in 1996 and the subsequent dematerialization of securities (including shares and bonds), the State introduced Section 8A to promote transactions in the form not materialized and exempted the dematerialized securities from the payment of stamp duty.