Section 25 of Schedule 1 to the Bombay Stamp Act provides that stamp duty on the transfer related to the merger of undertakings under the Companies Act is 10% of the total market value of the shares issued or allotted in exchange or otherwise and the amount of consideration paid for such a merger. the article sets a ceiling for stamp duty; Shareholder agreements or share underwriting agreements often have a indemnification clause and must be stamped accordingly. 5.3 A person may be liable to a severe term of imprisonment of up to 6 months (not less than one month) and a fine of up to Rs 5,000 if it is shown that the instrument was undervalued or that a brief payment of tax was made for the purpose of evading customs. This article was written by Advocate Shamika Vaidya, who is seeking a degree in M&A, Institutional Finance and Investment Laws (PE and VC transactions) from Lawsikho.com. Here, she listed the stamp duty that is attracted during M&A transactions. Same duty as for promotion. In the case of a gift to a spouse, Brother, sister, lineal or descendant @ Rs. 10 for each R. 500 or a part (about 2%) of the market value Tax identical to that on a transfer on the amount of the consideration payment of stamp duty on the allocation of shares by government companies that does not send the PAS3 form to Delhi The stamp office determines the market value of the property by referring to an annual rate statement (commonly) B. Stamp Duty Ready Reckoner), which indicated the market values of various properties in Mumbai. The reckoner divides the property into different categories such as built-up land, undeveloped land, housing units, industrial/office units, shops, etc., and determines their market value accordingly.
Section 5(c) of Schedule 1-A to the Bombay Stamp Act provides that, where an agreement is related to the purchase or sale of shares in a public limited company or other entity, if an agreement is related to the purchase or sale of shares in a public limited company or other entity, it is 0.005% of the value of the shares at the time of their purchase or sale. In the case of an agreement concluded between or by members of a recognized stock exchange, the stamp duty is the same. If it is a residential building that is a building or unit (reduced rate): NOTE – If we issue the above documents after the prescribed period, Challan will be generated with penalty after hearing in the department and payment of stamp duty. (The date of the hearing is written on the recommended identifier after the filing of the above documents) 2. The assignment of copyright shall be exempt from stamp duty. 4.1 P. 17 of the Act provides that all instruments subject to tax and executed in Maharashtra shall be stamped before or at the time of execution or immediately after or on the working day following the date of execution. 4.7 Any person who bears and pays stamp duty is the matter of the agreement between the parties. In the absence of such an agreement, the law provides that in the event of a transfer, the tax must be paid by a buyer and, in the case of a lease, by the tenant.
In the case of obligations, release, settlement, it must be paid by the person who manufactures or pulls the instrument. In the event of an exchange, it must be paid equally by the parties and, in the event of division, by the parties in relation to their respective shares. In all other cases, it must be paid by the person who performs the act. Stamp duty is shown below in four states, namely Maharashtra, West Bengal, Karnataka, Delhi for M&A transactions. See clause 32 of the Indian Stamp Act, 1899). – This is referenced by you for a period of 30 days to pay stamp duty. Section 32 of the Indian Stamp Act does not mention this. You would ask to verify and confirm that Section 20 of the Karnataka Stamp Act calendar states that stamp duty is 5 percent on the market value of the property. This applies to both movable and immovable property. .