Valuation of shares
This query is : Open
07 March 2014
A promoter of a private limited company wants to transfer his share to another person.
The face value of share is Rs. 10 and the number of shares is 1,00,000 shares.
How to compute the value of shares to be transferred and on what date should the shares be valued. whether it is on the date of transfer or on the last balance sheet date.
The face value of share is Rs. 10 and the number of shares is 1,00,000 shares.
How to compute the value of shares to be transferred and on what date should the shares be valued. whether it is on the date of transfer or on the last balance sheet date.
08 March 2014
Hi,
Valuation of shares is made on DCF basis, i.e. on the basis of projections for coming years.
If, it is resident to resident transfer, then price may be the valuation price or lower (not lower than face value)and if it is non-resident transfer, then price shall be valuation price or higher.
Valuation of shares is made on DCF basis, i.e. on the basis of projections for coming years.
If, it is resident to resident transfer, then price may be the valuation price or lower (not lower than face value)and if it is non-resident transfer, then price shall be valuation price or higher.
08 March 2014
Sir if the transfer of shares is at more than the fair value then what are the provisions in Income Tax.
Suppose the Fair value is Rs.5/share and the shares are transferred at Rs. 11/share. Then what are the provisions under income tax.
Suppose the Fair value is Rs.5/share and the shares are transferred at Rs. 11/share. Then what are the provisions under income tax.
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