Dear All,
What are the provisions applicable for issue shares at premium by a pvt ltd company ?
How to determine at what value premium can be charged &
Are there any Tax implications for the above ?
Thanks /
CA.Sonia (professional) (517 Points)
24 September 2013
Dear All,
What are the provisions applicable for issue shares at premium by a pvt ltd company ?
How to determine at what value premium can be charged &
Are there any Tax implications for the above ?
Thanks /
Akash Jain
(CA Final Student)
(261 Points)
Replied 24 September 2013
For the purpose of Section 56 of Income Tax Act, you may refer to Rule
11UA for determination of fair market value. It specifically list the
procedure for valuation of shares both quoted and unquoted shares. Once
you get the fair market value, you can work our the premium to be
collected on issue of equity shares without attracting Section 56
(2)(viib) of Income Tax Act.
Ritzz
(CA Final - Article )
(365 Points)
Replied 24 September 2013
Kindly refer the below link
https://company-registration.pro/procedure-for-issue-of-shares-at-premium/
Regards
Vishnu Agarwal
(student)
(39 Points)
Replied 25 September 2013
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)