conversion of share application money into share capital
This query is : Resolved
28 April 2010
whether there is any time limit to convert share application money into share capital.
problem is one of company is stating large amount as share application money in his balance sheet for long time. is it permissible to not to convert such money within any time into share capital?
problem is one of company is stating large amount as share application money in his balance sheet for long time. is it permissible to not to convert such money within any time into share capital?
28 April 2010
In Companies Act there is no time limit for keeping share application money but as per Listing agreement it should not be more than 1 year.
Hence it is advisable to make allotment within 1 year of receipt of application money. However, if kept for more time than there is no non compliance but ROC may raise query on basis of Form 23AC file & balance.
Hence it is advisable to make allotment within 1 year of receipt of application money. However, if kept for more time than there is no non compliance but ROC may raise query on basis of Form 23AC file & balance.
Message likes :
1 times
28 April 2010
More over if the share application money is received from a non-resident, shares must be allotted with in 180 days therefrom other wise the money has to be returned as per Foreign Exchange Managemenr Act.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- Confusion around Form 26QB fields
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
