In SE Investments Ltd v Union of India & Ors, Delhi High Court held that the tax authorities can levy stamp duty on an increase in authorized share capital of a company only if the relevant law, in this case the Indian Stamp (Delhi amendment) Act, 2007, specifically provides for it.
Ruling on the competence of the Registrar of Companies (ROC) and the government of Delhi to levy and collect stamp duty the court noted that Delhi has not amended article 10 of the Indian Stamp Act to enable the state’s government to levy duty on an increase in authorized capital. However, this duty was payable in some other states where the law had been amended.
SE Investments was incorporated in 1992 with an authorized share capital of ₹2 million. After the company raised its share capital to ₹85 million it paid stamp duty on the increased amount. When the share capital was increased to ₹125 million and the ROC insisted again on stamp duty, it sought clarification from the Collector of Stamps of the government of Delhi, but was told to pay up. This prompted the company to file a writ petition before Delhi High Court.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
