Transfer of share in private company
This query is : Resolved
21 March 2012
What will be the legal consequences when we transfer shares from one SH to other & transfer is taking place below the price on which originally shares were alloted i.e. below the market price.
21 March 2012
Valuation of share for the purpose of transfer of shares of a private company
Normally Articles of a private company contain provisions in this regard and provides that the shares are to be sold at a fair price determined by directors or the company's auditors.
In fact it is the discretion of shareholder to sold his shares at his desired price. This price may be Re. 1. However it is easily possible in case of a public company. But in case of a private company directors may compel the shareholder to transfer shares at a fair price determined by directors or the company's auditors. Reason being in a private company shares are not freely transferable.
Regards
Normally Articles of a private company contain provisions in this regard and provides that the shares are to be sold at a fair price determined by directors or the company's auditors.
In fact it is the discretion of shareholder to sold his shares at his desired price. This price may be Re. 1. However it is easily possible in case of a public company. But in case of a private company directors may compel the shareholder to transfer shares at a fair price determined by directors or the company's auditors. Reason being in a private company shares are not freely transferable.
Regards
Message likes :
1 times
21 March 2012
Thanks alot sir.
Sir further i would like to ask and confirm with you some implications.
suppose we have issued share at Rs. 500/- having face value of Rs. 100/- & now we want to transfer it to one of the director of the company then is their any problem in companies act or income tax act either to transferor or to the director.
Sir further i would like to ask and confirm with you some implications.
suppose we have issued share at Rs. 500/- having face value of Rs. 100/- & now we want to transfer it to one of the director of the company then is their any problem in companies act or income tax act either to transferor or to the director.
21 March 2012
Hi
In Companies Act, there is no issue on transfer of shares to director.
In Companies Act, there is no issue on transfer of shares to director.
Message likes :
1 times
22 March 2012
ok thanks sir...
can any one throw light on implications in IT act, for the director and for the transferor?
can any one throw light on implications in IT act, for the director and for the transferor?
24 March 2012
If you are purchasing shares at the rate less than its F.V (in case of Unlisted Companies take B.V.) then it will income under the heading other source in the hands of Transferee.
Message likes :
1 times
24 March 2012
sir please elaborate.what amount will be taxable to he transferee, difference between B.V. & F.V.?
24 March 2012
Suppose Fair value or book value is Rs. 15 and transfer value is Rs. 12 then Rs. 3 will be income of Transferee.
Message likes :
2 times
24 March 2012
Ok thanks alot honey sir...
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Is online PGCE worth it?
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
