the share transfer is exempt from Stamp Duty and no relief is being claimed, or. the amount paid for the shares is not a chargeable consideration.
Stamp duty is payable on the share transfer document when you acquire shares. It is payable on the actual price or market value of shares, whichever is the higher amount. The stamp duty rate is 0.2%.
How to Transfer Shares of a Private Limited Company
- Step 1: Obtain share transfer deed in the prescribed format.
- Step 2: Execute the share transfer deed duly signed by the Transferor and Transferee.
- Step 3: Stamp the share transfer deed as per the Indian Stamp Act and Stamp Duty Notification in force in the State.
Paperless transfers of stocks, shares and other securities are exempt from SDRT (there is no tax to pay) if they are: shares that you receive as a gift and that you don’t pay anything for (either money or some other consideration) shares that someone leaves you in their will.
What is consideration of transfer?
Transfer Consideration means all considerations paid by assignee to Party B or Party C in order to obtain shares or assets it purchased. … Transfer Consideration shall include consideration in any form, including money, property, assumption of liabilities and any other item or thing of value.
Duty Payable On Stamping Of Shares
Rs. 1/- for every Rs. 1000/- or part thereof of the value of the share including the amount of premium.
You are also exempt from paying stamp duty on shares that are transferred directly between parties without payment. If the transfer is exempt or there is no chargeable consideration, you do not have to pay stamp duty or SDRT, nor do you need to tell HMRC about the share transfer.
What assets does stamp duty apply to?
Stamp duty reserve tax is charged on electronic purchases – such as typical stock market purchases made through a stockbroker. Stamp duty is charged when you use a paper stock transfer form – as might be the case, for example, if you purchase a private company.
Who pays stamp duty buyer or seller?
It is always the home buyer who pays stamp duty, not the seller. Usually, your solicitor will pay it on your behalf as part of the purchase process.