Share application money

In case you have share application money outstanding as on 01.04.2014 you will get 1 year time to either allot it or to repay it back to the respective parties. However within 3 months you need to file a form with the ROC. 

For more information visit capraveenmr.wordpress.com or contact me at mrpaveen @ live.com

Hi Rahul

Section 42 states that share application money is to be allotted within 60 days of receipt or refunded within 15 days thereafter....or else interest to be paid thereafter...

The deposits rules states that any share application money not refunded as per above will be treated as deposits and compliances are to be accordingly done...

So to avoid above complications and since authorised capital is also not increased, it is better if you refund the share application money for which you have ample time to do so....

Regards

Thanks praveen and vandana

but what happen if we return this money within  60 days i.e. before 31/05/2014

I dont think it will create any problem....it is the company's discretion whether to allot or not....

no my question is if we return the money with in 60 days that do we need to file DPT -4

No, it will be treated as deposits only if it has not been allotted or refunded within the time period mentioned....so since you are refunding it within the time limit it is not a deposit....

Dear all,

Can a company issue shares without asking for share application money.