Stamp Duty on Increased Share Capital Limited to Articles of Association, Not Procedural Forms, with Cap on Cumulative Duty.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Liability of stamp duty on increase in share capital - How stamp duty is to be applied to Articles of Association in cases of increased share capital? - The Supreme Court clarified that Form No. 5, merely serving as a notice to the Registrar, does not fall within the ambit of "instrument" as defined under the Stamp Act. It underscored that only the Articles of Association, which embody the company's regulations, can be stamped, and not the procedural forms associated with it. - The Court decisively interpreted the amendment introducing a maximum stamp duty cap as a one-time measure applicable to the Articles of Association, including any subsequent increases in share capital, provided the cumulative stamp duty did not exceed the prescribed cap.....