Answers On Topic: rule 11UA
can unlisted company charge share premium on rights to shareholder without complying with rule 11UA?
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The assessee is a private limited company. The share value of the company is Rs.100/- As per Balance sheet the share value is Rs.350/- Can the company issue shares to an investor at face value? Ifso what would be the income tax implication in the hands of the company as well as the Investor?
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Assessee is pvt limited co . One of the share holder is interested in purchase of shares of another share holder. Whether he can purchase the shares at the face value? Or at the price ignoring the market vlaue of rights in immovable property? Whether valuation report as per Rule. 11UA is mandatory? Whether liability which may require for the claim on the rights in immovable property can be consider while working of value of share can be consider even if not recorded in books of accounts ? pl guide .
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The book value /FMV as per Rule 11UA of a Pvt ltd concern is Rs 200 per share. The Company declares a rights issue of 10 equity shares each against each equity shares held & accordingly equity shares are offered to all existing shareholders proprotionately to their shareholding. The fresh equity shares are offered at face value of Rs 10 each only. Few shareholders do not opt for the additional equity shares & others subsribe. Does sec 56(2)(x) get attracted to the shareholders subsribing to the issue since equity with FMV Rs 200 gets alloted @ Rs 10 only. Although…
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Assessee submitted valuation report as per Rule 11UA determining valuation of share at Rs.32/- per share. The Assessing Officer calculated Value of share as under: Share Capital - A Reserves & Surplus - B A + B divided by number of shares (c). The value came to Rs.22. The Assessing Officer made addition of Rs.10 i.e., Rs.32- Rs.22 in the hands of the company on the number of shares allotted by the company u/s 56(2)(viib) of the Act. Please let us know whether the addition is justified. Any case law in support of the assessee. Please guide us how to…
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rights issued to shareholder of unlisted cos