Over 2.5 lakh firms registered in the national capital region will have to shell out additional stamp duty if there was any increase in their authorised share capital in the current fiscal, thanks to amendments made to the Indian Stamp (Delhi Amendment) Act, 2012.
The companies will have to electronically deposit the duty if there was an increase in the share capital at the rate of 0.15% of the total value of the increased share capital (up to a maximum ceiling of R25 lakh). There has been no such provision for companies in the Delhi NCR in the past.
The ministry of corporate affairs (MCA) has already notified the rate for the new stamp duty, the proceeds of which will go to the Delhi government, officials said. The MCA has also dispatched order to this effect to the Registrar of Companies, Delhi, and through it to all companies.
Expecting an increase in its stamp duty collections, the Delhi government has already earmarked around 23% increase in its stamp duty and registration to Rs 5,300 crore for 2013-14 over 2012-13.
“Rough estimates based on previous year data show at least 8-10% of the registered companies in Delhi NCR increase their authorised share capital each year. And these are big corporates and their subsidiary companies. The collections from stamp duty should be substantial,” a senior official in the Delhi government said.
According to officials, an amendment in Article 10 of Schedule I-A of the Indian Stamp Act, 1899 is going to ensure the Delhi government collects its legitimate stamp duty on any rise in share capital by companies. “With insertion of Clause (c) of Article 10, the Delhi government would now be empowered to invoke 0.15% of the authorised share capital with a monetary ceiling of R25 lakh as stamp duty in case of every increase in the authorised share capital,” said the official.