What is Franking ? & Stamp Duty on Share Certificates?

A) What is Franking ?
Why Documents Need to be Franking ?


B) Stamp Duty on Share Certificates?

Franking 

You might have seen postal envelopes with the stamp denominations, NOT in actual stamps but sort-of stamped in RED or BLACK (Image below), which includes the postal amount. No separate stamps are to be affixed for such envelopes. 

                   

Difference between Franking and Printed Stamp Papers. 

Non judicial stamp papers are generally used for execution of legal documents such as sale deed, lease deed, etc. Non Judicial Stamp Paper can be purchased from the Stamp Vendor and later on you can type on it.

In some cases adhesive stamps are used for eg: Notarial acts, share transfer stamps. 

After the Telgi scam, franking of the value on the instruments has come into usage. Having addressed the above basic legal frame work on levy of stamp duty,

Hence it is required to first prepare a document on paper and before signing parties on it, take it to nominated Branch of a Bank pay the stamp duty there and then the bank will put stamp on your document indicating the value of the stamp duty. That is called franking.

                             

FRANKING : This is one of the several methods of indicating the payment of stamp duty. Franking machines are installed in some Sub-Registrar office in the State. These machines frank upto a denomination of 999 rupees. An application indicating the amount of duty to be frank is made to the proper officer authorize under the rules along with the unexecuted typed or printed documents. The necessary amount is paid in cash to the proper officer and the required denomination is franked on the document and return to the applicant.

B) STAMP DUTY ON SHARE CERTIFICATES.

1. Andhra Pradesh : 

Thirty Paisa/Since 30paisa Stamp not available , Rs. 1 Revenue stamp irrespective of amount ,(on Folio)

2. Arunachal Pradesh 

Rs. 5.00 Revenue stamp irrespective of amount

3. Haryana 

Rs. 1 stamp irrespective of amount ,(on Folio)

4. Himachal Pradesh

 Forty Paisa/Since 40paisa Stamp not available , Rs. 1 Revenue stamp irrespective of amount ,(on Folio)

5. Karnataka 

Rs,1 for every 1000 Rs, or a part thereof of the value of the share, scrip or stock.

6. Kerala

 Fifty Paisa irrespective of amount ,(on Folio)

7. Maharashtra 

Rs,1 for every 1000 Rs, or a part thereof of the value of the share, scrip or stock..

8. Manipur NA

9. Nagaland 

Forty Revenue stamp irrespective of amount

10. Orissa 

One rupee Revenue stamp irrespective of amount

11. Punjab 

Ten Rupees [40 n.p. under act 34 of 1960 and 25 n.p. prior thereto irrespective of amount ,(on Folio)

12. Rajasthan 

One rupee for every one thousand or a part thereof of the value of the shares, scrip or stock

13. Tripura As of Assam

14. Uttar Pradesh 

One Rupee (irrespective of face value market value)

15. National Capital Territory of Delhi 

One rupee for every one thousand or a part thereof of the value of the shares, scrip or stock

16. Tamil Nadu 

Rs. 1 Revenue stamp irrespective of amount

17. Madhya Pradesh 

NA

18. Gujarat 

One rupee for every one thousand rupees or a part thereof of the value of the share, scrip or stock.

19. Bihar NA

20. West Bengal 

Rs,1 for every 1000 Rs, or a part thereof of the value of the share, scrip or stock.

21. Jharkand NA

22. Chhttisgarh NA

23. J&K NA

24. UttaraKhand NA

25. Meghalaya NA

26. Goa 

One rupee for every one thousand rupees or a part thereof of the value of the share, scrip or stock.

27. Assam NA

28. Sikkim NA

29. Mizoram NA

Union Territories

1. Chandigarh 

Forty paisa Forty Paisa/Since 40paisa Stamp not available , Rs. 1 Revenue stamp irrespective of amount ,(on Folio)

2. Andaman and Nicobar Islands NA

3. Dadra and Nagar Haveli 

One rupee for every one thousand rupees or a part thereof of the value of the share, scrip or stock.  

4. Daman and Diu NA

5. Lakshadweep NA

6. Puducherry NA

Rates of Stamp Duty in DELHI

Click on the blelow link

http://www.aadisol.in/aca/images/utilities/ut_12.pdf

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Thanks & Regards                       

Ravi Garg                                    

Company Secretary                    

91-7838204665,

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