13 January 2020
A Pvt Ltd and B Pvt Ltd are Associate companies...
B Pvt Ltd holds 50% shares of A Pvt Ltd...
5 share holders are there in B Pvt Ltd, Now B Pvt Ltd share holders wants to purchase 10% share of A Pvt Ltd from B Pvt Ltd and after that want to close B Pvt Ltd..
Share holders of B Pvt Ltd will become share holders of A Pvt Ltd..
Now if B Pvt Ltd transfer it's share at Face value of Rs.10 in A Pvt Ltd then is there any issue under income tax act..??
13 January 2020
The transfer of shares should be done at value supported by valuation report signed by a Registered Valuer. If Registered Valuers assign the value at face value then the transfer can be done without any problem else you may face additions from the IT department.
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