Applicability of decision of high court

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Gaurav Garg (Querist)

23 April 2009 FRIENDS,

MY QUERY IS GIVEN AS BELOW:

A COMPANY RAISED IN JUNE 2007 USD 50 MILLION THROUGH FCCB REPAYABLE ON OR BEFORE JUNE 2012 BY-

I) ISSUE OF EQUITY SHARES OF RS 10 EACH @ RS. 1,000, OR

II) PAYMENT OF CASH AT A PREMIUM OF 45%.

IN OCT 2008 COMPANY'S SHARE WAS TRADING AT RS. 325 EACH IN BSE.

COMPANY DECIDES TO REDEEM FCCB WORTH USD 25 MILLION BY ISSUE OF EQUITY SHARES AS IT'S FACING LIQUIDITY CRUNCH.

TO GIVE EFFECT TO ABOVE SCHEME COMPANY BUY BACK 12,50,000 SHARES @ RS. 350 EACH.
AFTER BUY BACK IT REDEEMS FCCB OF USD 25 MILLION BY ISSUING THE 25,000 SHARES @ RS. 1000 EACH TO FCCB HOLDERS.

NOW WHAT WILL BE THE ENTRIES IN THE BOOKS FOR THE BUY BACK OF SHARES & REDEMPTION OF FCCB. ?

PLEASE ANSWER IN ELABORATIVE MANNER.

Sudhag

Sudhag (Querist)

23 April 2009 Please tell the applicability of Delhi high court decision in Mumbai.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

23 April 2009 In which context you are asking???

Sudhag

Sudhag (Querist)

23 April 2009 I am asking in context of this recent DELHI HC decision that there will be no SERVICE TAX on renting of immovable property. can i apply this in Mumbai and not pay ST on rent?? Please tell

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