The Ministry of Corporate Affairs has in exercise of the powers conferred under Section 642(1) read with Section 610B of the Companies Act, 1956 have amended the Companies (Central Government’s) General Rules and Forms 1956 to substitute the Form No 5 which is filed for Notice of consolidation, division, etc. or increase in share capital or increase in number of members.
The highlight of the amendment is as follows:
· The increase in authorized share capital of any company which is registered in New Delhi would not attract any payment of stamp duty.
· The above is pursuant to the order of the Hon’ble High Court of New Delhi passed in the matter of S E Investments Limited Vs Union of India and Others [ W.P. (c) 2393/2010 and CM Appl. 4794/2011] whereby it was held that there is no provision in the Delhi Stamp Act for payment of stamp duly on “increase in authorized capital”.
· The above rules are effective from 25 September 2011.
The highlight of the amendment is as follows:
· The increase in authorized share capital of any company which is registered in New Delhi would not attract any payment of stamp duty.
· The above is pursuant to the order of the Hon’ble High Court of New Delhi passed in the matter of S E Investments Limited Vs Union of India and Others [ W.P. (c) 2393/2010 and CM Appl. 4794/2011] whereby it was held that there is no provision in the Delhi Stamp Act for payment of stamp duly on “increase in authorized capital”.
· The above rules are effective from 25 September 2011.
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