10 October 2009
we have made prefential allotment of share....we have alloted shares to promoters at par while to the outsiders at premium now the managment has raised the issue to wards this statement....... kindly tell me how to justify this statment
11 October 2009
The above is not justifiable. It is wrong as per law and also as per income tax the difference between the offer price to outsider and allotment price will be treated as distribution of deemed dividend and the company has to pay dividend tax accordingly.
CAclubindia
