Issue of equity shares instead of payment pf rent
This query is : Resolved
24 June 2013
one private limited company wants to issue equity shares instead of payment rent to the owner? is it correct to issue the shares ? what are the tax benefits to the company?
24 June 2013
There is not any tax benefit. but company wants to save cash .. and yes issue of share is also consideration and company can do it.
Ajay Mishra
(Expert)
24 June 2013
Hi
You can do so, but for this u will make an agreement with owner for subscribing shares instead of taking rent.Without consent/agreement you can not issue shares against rent.
You can do so, but for this u will make an agreement with owner for subscribing shares instead of taking rent.Without consent/agreement you can not issue shares against rent.
25 June 2013
if the receiver of the rent should pay any tax for receiving the equity shares instead of future income? i.e, the company wants to issue the equity shares in advance? what are the tax issues
Ajay Mishra
(Expert)
25 June 2013
You can not allot shares without receiving any consideration. Advance allotment is prohibited.
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
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Advances to related party
- Section 269ST applicability for capital introduced by partner to his partnership firm
- ETDS return q4 25-26
- Capital Gains Tax on Inherited Mutual Fund
- IMS (import of goods) ITC related
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
