CA Sourabh Jain (Practicing Chartered Accountant) (132 Points)
29 January 2014Fact is one private limited company
three shareholder say A B C
A transfer (sell) his share to C.
face value - 100/-
book value - 500/-
fair / market value - 700/-
sell price - 300/-
What treatment in accounts ,?
What Tax liability?
What Rate of tax?
Warm Regards
CA Sourabh Jain
Umesh Rijal
(Internal Auditor)
(909 Points)
Replied 29 January 2014
Dear Saurabh sir, there will be no treatment in accounts because the transaction happened between A & C not with co. There will be only change in shareholding pattern of the co and co books the share at their face value.
Whose tax lability & rate of tax?
CAclubindia
