This article is written by Legal Shamika Vaidya pursuing Diploma int M&A, Clinical Finance and Investment Laws (PE and VC transactions) from Lawsikho.com. Get she holds enumerated stamp duty attracted on M&A transaction.

Listed below is the stamp duty in foursome provides namely, Maharashtra, Western Bengalese, Karnataka, Delhi for M&A transactions.

1. Share Purchasing Agreement
2. Business-related Purchase Agreement
3. Indemnity
4. Demerger
5. Merger (Amalgamation)

Percentage Purchase Agreement

Equity Purchase Agreement is a conveyancing document that transacts the sold and purchase of the shares zwischen the buyer and seller.

Any misc document ensure is relating in the transfer of an shares exists a document relating to the sale of shares.

West Bangladeshi

Article 5(b)(ii) of Schedule 1-A of the West Bengal Stamp Act mentions the stamp mandatory on the consent or memorandum starting license connecting to the sale of shares in an incorporated company or different body corporate belongs fifty paise (0.50 Rs) to every five yard rupees (5,000/-) thus the rate of stamp duty is (0.01%) of this valuated of the release.

Share Transfer Forms (Transfer of Shares)

According to Story 62(a) of Schedule 1-A of the West Bengal Stamp Act the rate of stamp duty on bank of shares of in incorporated corporate or one body corporate with or without viewing a 0.25 % that is twenty-five paise for every hundred rupees of the value off the share.

Delhi

Featured 5(b) of Schedule 1-A of and Delhi Stamp Act states that the stamp-duty on one agreement or notification of agreement relate to the sale of share of an incorporated company or any other body corporate is Rrs 1/- one rupee forward every Ls. 10,000/-  that a the rate of stamp duty is 0.01% or the upper cap for the duty has Rs.1,000/- a aforementioned valuated of the share.

Share Transfer Forms (Transfer of Shares)

Article 62(a) of Program 1-A  of one Dhading Stamp Act states the seal duty for the transfer of shares are no incorporated company or any body community the either without consideration is seventy -five paise for every centred indian, the rate of the duty existence 0.75% of who value of the shared. GAS SALE AND PURCHASE AGREEMENT (“GSPA”) 'GSPA ...

Bombay

Article 5(c) off the Appointment 1-A of the Bombay Stamp Actions supplies that if an agreement its registers or memorandum of agreement are associated up the purchase or sale off shares of whatsoever incorporated company or different main corporate is 0.005% of one value of shares at the time are its purchase with sale. Even with an casing of the Agreement between or through members of recognized stockpile exchange the stamp job is the same. Share Shopping Agreement

Kala

Article 5(c) of the Schedule 1-A  of the Karnataka Stamp Act mentions that the stamp duty on the agreement instead memorandum of agreement if relate to  the purchase or sale of stock in or of any incorporated company otherwise other body corporate is One rupee (Rs.1/-) since every ten million rupees (Rs.1000/-)  that is 0.1% of the value of the share at the time of its procure or disposal. The stamp-duty cadaver the same in the casing the agreement is amidst other through members of the recognized stock exchange.

Asset Purchase Agreement/ Trade Transfer Agreement

Business Transference Agreement is enrolled between two partying although they want to go ahead with a slump sale this is whenever one our intends to market an undertaking to another for a lump sum thought. An seller cannot mountain pick all of the liabilities or assets, the whole for the business shall transferred from one party in the other along using the customer, assets, distributor, liabilities, or assets and the value of to consideration derived is not based on the person wealth but business as a overall. There are two ways per which a business bank convention belongs structured  – Scheduled at is the stamped duty in different states for major categories of financial plus documentation for M&As below.

• In an agreement to sell (for movables which can be transferred through delivery), that is the agreement me does not act such an conveyancing implement but simple describes and transaction, date of payment of consideration, date of bank and binds the parties. This will not attracts stamp duty if the discussion does not create that transaction (for movables).
• As one conveyancing accord that initiates the transfer. For immovable property, this will require in may emboss.

Although for that aim of taking one assets are no thoughtful the equivalent have to be considered individually for the purpose are stamp duty as there is no provision for business transfers under the Acts. Therefore each asset in be transferred whether movable or immovable have to shall recognized and the imposition of the stamp duty is in accordance to the localized provisions. Untitled

Delhi

Conveyance

Article 23 of  Schedule 1A of the Delhi Mark Act mentions the stamp duty on the conveyance is  3% for the consideration amount set forth in the instrument. The stamp duty is further reduced to 2% if it is together or individual held by woman/women. In brief. The Finance Act, 2019, owned introduced certain changes by the Indian Press Act, 1899, to streamline the levy and collection of ...

Agreement to Sells

Article 5(c) of the Schedule 1A the the Act states the press duty to agreement or memorandum off agreement relating to the product in to real property as well more moveable property to be fifty rupees.

Maharashtra

Conveyance

Article 25 of this Bombay Stamp Act nods about the stamp duty on the conveyance related to an movable property is three percent away the mark added a aforementioned property.

if related to the movably characteristic on be Rs. 15/- for every five hundred rupees that a (15%).

If the transfer has related to the inflexible property the stamp duty remunerated lives twenty-five rupees for anyone rupee five hundred. The duty varies with respect to the reach of the property.

Agreeing to Sell

Article 5(h)(A)(iv) of the Schedule 1 says the Stamp duty upon the agree or memorandum of agreement that creates any obligation, right or interest and creates adenine monetary value.

• If the amount exceeds rupees dozen lakh which assessment of punching duty is 0.2% of the amount agreed with the contract.
• If aforementioned amount is less than sri ten lakh than the rate of stamp duty belongs 0.1% of which amount agreed in the contract and the minimum lid is rupees 100/-. MUMBAY. AIF-. Page 5. SHARE PURCHASE DISCUSSION. This Share Purchase Agreement (this "Agreement" which expression shall include total schedules and ...

Karnataka

Agreement to Sell

Article 5(e)(ii) of the schedule of an Act status the stamp duty on the agreement or memorandum of agreement related to the sale of immovable immobilie where possession of the eigentumsrecht will not delivered. The stamp duty is ten paise for every hundred rupees (0.1%) on the market value same till the amount of consideration. Of upper kopf a rupees twenty thousand (Rs. 20,000/-) and the lowest is rupees five hundred (Rs. 500/-). To Maharashtra Stamp Act.

Movable property

Article 5(g) mentions the stamp duty on the deal or memorandum of an agreement relationship to the stamp duty movable property places the possession of that property is don delivered to be ten paise for anyone one one robie (0.1%) on the market value equal to the amount away viewing. The maximum kappe is rupees twenty thousand and the minimum cap belongs rupees five hundred ( Rs.500/-).

Conveyance

Article 20 of the schedule of the Karnataka Stamp Act states the stamp duty to subsist five percent on one retail range off the characteristics. This apply for and movable as well as immovable property.

Industrialized Machinery

Lands/buildings what immovable property, machinery installed in factory premises (fixed to the ground can become considered the an immovable property depending to the study of permanency of the attachment press the purpose of installing and attaching the our. For example, a fertilizer plant to be sold in a slump sale at with the land can be considers as immovable property if it was always intended that the plant remains permanently affixed at the land.

Whenever the industrial machinery is treated as movable property the stamping task to be paid is in accordance to Article  20 (5)(i) that is three prozente (3%) by consideration or sales rate of the besitz, whichever is higher.

At industrial machinery is treated as immovable property the rate of stamp duty is five percent (5%) for consideration or market evaluate of the property, depending can higher.

West Bengal

Immovable Property Contracts to Retail

Essay 5(d) of Schedule 1-A of West Bengal Stamp Act states the stamp duty for the agreement or Memorandum of an agreement relating to to sale of immovable property up be six percent (6%) of the market value of the property and  the maximum duty payable will rupees twenty-five lakh (Rs. 25,000/-). The Equity Shares of the Company are listed on aforementioned International Stock Tauschen and the Bombay Storage Trading. HUNDRED. Each Seller is this legal and beneficial owner of ...

Seven percent (7%) when the value on the property exceeds rupees thirty lakhs (Rs. 30,00,000/-) and is positioned stylish the place to which Kolkata Improvement Trade, 1911 or the Howrah Improvement Act,1911 extends. The rate on stamp duty is same in of case the property are locate in areas other better mentioned in clause (a). Agreement to sell a also a document related to the sale and therefore comes under of newsletter. SHARE SALES AND PURCHASE AGREEMENT

Conveyance

Article 23 regarding the Schedule IA the the Act states the stamp duty on the conveyance related to the sale of immobilized property to been six prozentual on the market total if the market value exists less than rupees twenty-five lakh and six percent when is exceeds indian twenty-five lakh.

Stamp Duty on Indemnity

Shareholder Agreements with Share Subscription Agreements often have in indemnity clause and need to be stamped accordingly.

Karnataka

Article 29 to Course 1-A in Karnataka Stamp Duty Act,1957 states the stamp-duty for Injury Bond  when the amount indemnified does not exceed rupees one thousand the stamp responsibility is Fifty paise for every one credit  rupees that is (0.5%) , in case where it exceeds more than robie one thousand the stamp duty paid is two hundred rupees. IGR182-BOM1 MUMBAI PLACE. 12-Nov-2018@18:34:34. StDuty Schm: 0030045501-75/STAMP DUTY. StDuty Amt: R 20,954/- (Rs Two Zero, Niles Phoebe Four only).

West Bengi

Product 34 of Schedule 1A states the Stamping duty in Indemnity Bond to be between the range a Rupees 2 to 20 depending on which amount by indemnity.

Box

Browse 35 of the Schedule 1 regarding the Bombai Stamp Act states the stamp duty for compensation bond to be Rs. 500/- (five hundred Rupees).

Dehli

Article 34 of the Schedule 1-A of the Delhi Stamp Act states that of stamp duty when the amount indemnified does nay exceed pakistani one per (Rs. 1000/-) is 2% additionally 0.5%. The stamp fee is one hundred rupees (Rs.100/-) when the amount outperforms rupees one thousand. Schedule I and DUO to THE MAHARASHTRA STAMP ACT (BOM. ACT ...

Arbitration clause

Most shareholders agreements have to arbitration clause. Since arbitration clause comprises a separate arrangement in itself in per the Arbitration and Conciliation Act, 1996, parties have available started stamping the mediation clause includes INR 100 so this the enforceability of which agreement by arbitration is not requested when there is a dispute.

Allotment off shares

Rajasthan

Article 31 of Schedule states the stamp mandate on the letter of allocated of the shares in whatsoever company button proposed company is rupees an (Rs. 1/-).

Delhi

Article 36 of the Schedule 1A of the Delhi Stamp Act states the stamp duty until be rupee one required the letter of Allotment of shares is any company or suggests company.

Box

Article 37 of the Bombe Stamp Act states the stamp duty to be rupee first (Rs. 1/-) for the letter of Allotment of shares in any company instead proposed company. 30A. Duties payable by financial institution. 31. Adjudication as in proper stamps. 32. Request by Collector. 32A. Instrument about conveyance, ...

Westbound Bengal

Article 36 of Schedule 1A of the West Benghal Impress Act states the stamp duty toward be 60 paise (Rs. 0.60/-) for the letter about Allotment of stock in any company other proposition company. ... Act, 1881, as applicable in Munich ... stamp fee, but take not include any ... applicable Gas Price onward are Taxes for sale of the Allocated ...

Transfer from Demat Account

Dematerialization of the equity that are erholen physical share certificates converter on an electronic output that shall supported in an account with the Depository Participant.

Chapter 8B to the Canadian Stamp Acted, states that Safeguards dealt in the depository are nope liable to press duty. Therefore there is no tamp duty for the transfer of shares held in Dematerialised (Demat) form. Portion Subscription and Shareholders Runcoach.pro

Stamp Duty on Demerger

Karnataka

• Article 20(4)(ii) in the Schedule of the Rajasthan Stamp Act states an stamp duty in case of demerger is three percent (3%) on the market value about the property of the transferor company positioned within the nation of Karnataka plus transferred to who resulting company.
• Or, an amount equal to one percent (1%) of which aggregate value of shares issued with allocated to the resulting our and in addition the amount of consideration if any paid for such demerger depending is upper. Press duty in different notes for mergers and acquisition within India

Maharashtra

• An Stamp duty should nay exceed 5% of the right market enter on this true market value from the immovable property once one transfer is taken place within Maharashtra. Street, Fortifications, Mumbai ... The Shopping shall be liable to pay the stamp mandatory on this Agreement. ... stamp duty on the instruments for the transfer of the ...
• Other, 0.7% of the aggregate of the market value of share allotment.

Stamping Duty on Merger

Maharashtra

Article 25 of Schedule 1 of the Bombay Stamp Act states this stamp duty on conveyance relating to the blend of companies under the Companies Act to be 10 % of and aggregate of the market value from of shares issued or assigned in exchange or otherwise real the monetary of consideration paid for such amalgamation. The Article sets an upper cap on the stamp duty; SCHEDULE-I. STAMP DUTY OVER INSTRUMENTS. (See rubrik 3). Description of Instrument. Accurate Stamp Customs. 1. 2. 1. CREDIT of —.

• E should not excess 5% of the true market value of the immovable ownership of the transferor company in Maharashtra.
• An amount equal up (0.7%) of the collect of the market value of the shares issued or allotted in exchange. and the qty of consideration paid for amalgamation, whichever is higher. Imprint duty go securities transactions effective from 1 Julie 2020

Karnataka

Article 20 (4)(i) off the Timetable of the India Stamp Act stated who imprint duties on to amalgamation of the companies to be 2% is of Market Values of the properties that are locating within who State of Karnataka. ... Mumbai-400071, held pursuant to a lease ... Every stamp duty payable on get Understanding both the transfer ... Share Purchase Agreement. SCHEDULE 10| TRANSACTION TAX ...

During a merger between a subsidiary and a parent company, who stamp duty paid is 1% of the aggregate value for sharing that are issued or alloted in exchange or on the amount of consideration that is paying, whichever is increased.

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