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A, the grandfather of B wishes to transfer (X) shares of a Private Ltd Company having a face value of Rs. 10 each by way of Gift to B.
I understand that in terms of entry no. 62 of Schedule of Stamp Duty twenty Five paise for every hundred rupees of the value of the shares of an incorporated company is payable as a stamp duty. The relevant part is extracted below for your kind reference:
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62. Transfer (whether with or without consideration)- (a) of shares in an incorporated company or other body corporate;
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Twenty Five paise for every hundred rupees or part thereof of the value of the share:
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I intend to execute the following instruments/documents to give effect the transfer of shares in favor of B:
1. Gift Deed
2. Form SH-4, (As per the requirements of the Companies Act, 2013)
Queries:
Query 1:- What would be value of the stamp paper on which such Gift Deed shall be executed ?
Query 2:- As per the requirements of the Companies Act, 2013, a form SH-4 is required to be executed for the transfer of shares. Under the Stamp Act, Twenty Five paise for every hundred rupees or part thereof of the value of the share is required to be affixed on SH-4. As (A) wishes to transfer by way gift (X) shares of a face/nominal value of Rs. 10 each, what would be value of the (X) shares for the purpose of calculation of Stamp Duty.
Query 3:- Whether for the purpose of calculation of Stamp Duty, value of (X) shares shall be calculated at the face/nominal value or market value?
Query 4:- In case such calculation as mentioned in Query Nos. 1 &2 is required to be calculated at market value then in such an event how the market value will be ascertained for a private limited company which shares are not listed in any stock exchange?
Query 5:- Please also clarify whether equal stamp duty shall be payable on Gift Deed & SH-4 or only once a stamp duty is payable for a particular transaction i.e. if stamp duty is paid on SH-4 whether stamp duty as provided in entry No. 62 is required to be paid
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