Stamp duty on share deals challenged in HC

The Bombay High Court has admitted a petition challenging the constitutional validity of Maharashtra government’s move to issue a notification imposing stamp duty tax on sale or puchase of shares through BSE and NSE.

The petition, filed by a broking firm, Acumen Securities Ltd, came up for hearing on September 19 before a division bench, headed by Chief Justice Dalveer Bhandari, which admitted the matter and adjourned the hearing for two weeks. The high court allowed the petitioner to pay stamp duty tax on share transactions subject to the outcome of the petition.

As per the notification of May 7, the stamp duty tax has to be paid on sale or purchase of shares routed through BSE or NSE at the rate of .01 per cent on delivery transactions and .0025 per cent on non delivery transactions.