Issue of Shares

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Pankaj Jhawar (Querist)
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10 February 2009 We want to issue equity shares of a private limited company at premium.

What is the fair price at which we can issue shares at premium so that their is no query on the premium amount by the income tax authority???

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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10 February 2009 You have to calcualte the EPS.

You have to calcuate PE Ratio.

You have to calculate Book value of share.

You have to calucate Market value of share. (Estimation.)

Based on the above calculations you should fix the premium.

Income tax authorities will not question you why you have issued at a Rs._____ preium.