Buy back of equity share capital
This query is : Resolved
23 January 2015
Experts,
Sec. 68 of cos. Act 2013 - speaks about use of security premium for buy back. It is right to say that security premium can be used for premium on buy back, but my question is "Can we use the security premium to be transferred to CRR on buy back of equity share capital, i.e. for the proportion of capital amount on buy back.
What are the clarifications of MCA in this regard. Reference is pleased.
Sec. 68 of cos. Act 2013 - speaks about use of security premium for buy back. It is right to say that security premium can be used for premium on buy back, but my question is "Can we use the security premium to be transferred to CRR on buy back of equity share capital, i.e. for the proportion of capital amount on buy back.
What are the clarifications of MCA in this regard. Reference is pleased.
23 January 2015
Sec. 69 Co.act 2013.
(1)Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to the CRR reserve account and details of such transfer shall be disclosed in the balance sheet.
(2)The CRR account may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.
(1)Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to the CRR reserve account and details of such transfer shall be disclosed in the balance sheet.
(2)The CRR account may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.
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
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Average Cost Of High Quality Diamonds
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
