Grasim to pay Rs 3.5 crore stamp duty

Our Corporate Bureau

Mumbai, Nov 19: Grasim Industries, the flagship company of the
AV Birla group, would have to pay a stamp duty of around Rs 3.50 crore for picking up Reliance Industries’ 10 per cent stake in Larsen & Toubro (L&T). The stamp duty would have to be paid for the transfer of shares.

Sources from the state revenue department, which is closely watching this development, told The Finanial Express on Monday that the stamp duty would be recovered under the provision of 62 of Indian Stamp Duty Act 1899 for transfer of shares. Though the exact amount would be calculated only after receiving the proper application from Grasim Industries, the preliminary estimates show that it would be close to Rs 3.50 crore, sources added. Sources said that as per the provision of said Act, "the duty would be 0.5 per cent of the value of share. It also reads as 50 paise for every Rs 100 or part thereof the value of the share."