The Securities and Exchange Board of India (“SEBI”) has released Frequently Asked Questions (“FAQs”) on Indian Stamp Act, 1899 Amendment and Rules made thereunder.
The amended provisions of the Indian Stamp Act, 1899 brought through Finance Act, 2019 and Rules made thereunder have come in force w.e.f 1st July, 2020.
Some of the key queries addressed by the FAQ are –
- What are the expected key benefits of amendments in the Indian Stamp Act, 1899?
- What all instruments are covered under Part AA of Chapter II of the amended Stamp Act and the Rules made thereunder?
- Who will collect the Stamp Duty on behalf of the State Government?
- What is the manner of collection of stamp duty under new system?
- When and how will the stamp duty be transferred to each State?
- What would be the fees for the collecting agent?
- Whether stamp duty is applicable on bonus issue of shares?
- Whether stamp duty is applicable on units of Mutual Fund?
- Who will collect the Stamp duty in case of Mutual Fund and AIF transactions (sale, transfer and issue of units in demat mode) through recognized Stock Exchange or Depository?
Various other questions are also a part of the FAQs. In addition to this, stamp duty rates are also given under the FAQs.
Source : Securities and Exchange Board of India
