Stamp Duty on Share Purchase Agreement in Haryana: What Investors Need to Know

When it comes to investing in shares, it is important to understand the legal requirements and financial obligations that come with the territory. One such obligation is the payment of stamp duty on share purchase agreements. In the state of Haryana, stamp duty is levied on the transfer of shares as per the Indian Stamp Act, 1899. In this article, we will discuss the stamp duty on share purchase agreement in Haryana and what investors need to know.

What is a Share Purchase Agreement?

A share purchase agreement is a legal document that outlines the terms and conditions of the sale and purchase of shares between a buyer and seller. This agreement is usually drafted by lawyers and includes details such as the number of shares being sold, the purchase price, and other relevant terms and conditions.

Stamp Duty on Share Purchase Agreement in Haryana

In Haryana, the stamp duty on share purchase agreements is levied based on the value of the transaction. The current rate of stamp duty on a share purchase agreement in Haryana is 0.15% of the consideration or value of the shares being transferred, whichever is higher. The stamp duty is payable by the buyer on the date of execution of the agreement.

For example, if the value of the shares being transferred is Rs. 10,00,000, then the stamp duty payable would be Rs. 1,500 (0.15% of Rs. 10,00,000). In cases where the shares are being transferred for a nominal consideration or gift, the stamp duty payable would be Rs. 100.

Payment of Stamp Duty

The payment of stamp duty must be made in the form of a demand draft or electronic payment through the government portal. The buyer is responsible for paying the stamp duty on the share purchase agreement. It is important to note that the stamp duty must be paid within a period of 30 days from the date of execution of the agreement, failing which penalties may be imposed.

Conclusion

Stamp duty is an important aspect of share purchase agreements in Haryana and must be taken into consideration by investors. It is the responsibility of the buyer to pay the stamp duty on the share purchase agreement within the stipulated time period. Failure to comply with the stamp duty regulations can result in significant financial penalties and legal consequences. Therefore, investors must ensure that they comply with all legal requirements and financial obligations when investing in shares in Haryana.