Section 20 of the Karnataka Stamp Act List stipulates that stamp duty must have 5% on the market value of the property. This applies to both movable and immovable property. Stamp duty is proportional to the transaction value. The business transfer agreement is concluded between two parties if they wish to make a slump sale, in which one company intends to sell one business to another in exchange for a lump sum consideration. The seller cannot choose any of the liabilities or assets, the entire transaction is transferred from one party to another with customers, assets, sellers, liabilities and assets, and the value of the derivative counterparty is not based on individual assets, but on the activity as a whole. There are two ways to structure a business transfer contract – when it comes to state tax, it usually varies from state to state. Nevertheless, there is a general pattern that is followed. For example, let`s take a look at the stamp tax levied by the Karnataka state government. In addition to the above-mentioned documents, the Karnataka State Government levies stamp taxes: Section 8B of the Indian Stamp Act stipulates that securities traded on deposit are not subject to stamp duty. There is therefore no stamp duty on the transfer of shares held in dematerialized form. As already mentioned, the collection of stamp duty on share certificates has been transferred to the state legislature under the law.
Consequently, the Land Government decides on the amount of each value as a percentage of the issue price of a company`s folios by stamp duty. This is subject to change with the change in state policy for each fiscal year. The present value for each year is available on the government`s official web portal, which is used for payments The Haryana government increases stamp duty rates for various instruments under the Indian Stamp (Haryana Amendment) Act, 2018 Below is the stamp tax in four states, namely Maharashtra, West Bengal, Karnataka, Delhi for M&A transactions. Section 25 of Schedule 1 to the Bombay Stamp Act provides that stamp duty on the transfer related to the merger of undertakings under the Companies Act is 10% of the total market value of the shares issued or allotted in exchange or otherwise and the amount of consideration paid for such a merger. the article sets a ceiling for stamp duty; Article 5 (h) (a) (iv) of List 1 sets the stamp duty on the agreement or memorandum of understanding that creates an obligation, right or interest and creates monetary value. As the government collects stamp duty to generate revenue for itself, it has been very harsh in case of late payment. As prescribed, each person receives a 30-day window of opportunity to pay the stamp duty on the share certificate they purchase. If the delay is observed in the same, the government imposes a fine of up to a maximum of ten times the fine of the stamp duty to be paid.. . . .