Payment of stamp duty under Indian Stamp Act, 1899 is required even in cases of orders made by National Company Law Tribunal (NCLT) in terms of Section 230 to 240 of the Companies Act, 2013. Are there any exceptions or e

The Central Government has exempted the payment of stamp duty on instrument evidencing transfer of property between companies limited by shares as defined in the Indian Companies Act, 1913, in a case: where at least 90 percent of the issued share capital of the transferee company is in the beneficial ownership of the transferor company, or where the transfer takes place between a parent company and a subsidiary company one of which is the beneficial owner of not less than 90 percent of the issued share capital of the other. A circular was issued in the year 1937 vide which exemption was granted on payment of Stamp Duty when there is an amalgamation/merger between holding and subsidiary company. Delhi High Court in the case of Delhi Towers Ltd. vs. GNCT of Delhi made reference to this circular. Otherwise, stamp duty is payable on such orders, being an instrument liable to duty as a Conveyance Deed as was held in Hindustan Lever Ltd. vs. State of Maharashtra (2003) 117 Comp Cas SC 758, Emami Biotech Ltd (2012) . However, stamp duty being a state subject, the above would only be applicable in those States where the State Government follows the above stated notification of the Central Government otherwise stamp duty would be applicable irrespective of the relations mentioned in the said notification. Imposition of Stamp Duty is the prerogative of the State Government, hence applicable in only those states that have adopted the said circular.