About Share Application Money
This query is : Resolved
29 September 2009
Hi
Suppose if a private limited company has it’s authorized capital of Rs.100000
And also paid capital of Rs.100000/-. In this case amount brought in or withdrawn from business by directors (shareholders) we generally show as SHARE APPLICATION MONEY.
My Question / doubt :
1) Can we show it like Share application money, or is there is any other better way ?
2) If authorized & paid up capital is Rs.100000/- , can share application money be Rs.50 Lacs ?
3) Is there is any condition under companies act that share application money should be converted in to paid capital only, and can not be reduced or withdrawn by the directors (shareholders)
Suppose if a private limited company has it’s authorized capital of Rs.100000
And also paid capital of Rs.100000/-. In this case amount brought in or withdrawn from business by directors (shareholders) we generally show as SHARE APPLICATION MONEY.
My Question / doubt :
1) Can we show it like Share application money, or is there is any other better way ?
2) If authorized & paid up capital is Rs.100000/- , can share application money be Rs.50 Lacs ?
3) Is there is any condition under companies act that share application money should be converted in to paid capital only, and can not be reduced or withdrawn by the directors (shareholders)
Guest
Guest
(Expert)
29 September 2009
(1) It can't be shown as the Share application money. You should show it as the short term deposit
(2) Yes, share application money can be over authorised share capital
(3) Share application money can not be reduced, it is only refunded. But this option will put your company in the scrutiny one day.
(2) Yes, share application money can be over authorised share capital
(3) Share application money can not be reduced, it is only refunded. But this option will put your company in the scrutiny one day.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Capital gain from sale of house property
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- Copyright software
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Multiple trade mark
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
