Issue of equity shares instead of payment pf rent
This query is : Resolved
24 June 2013
one private limited company wants to issue equity shares instead of payment rent to the owner? is it correct to issue the shares ? what are the tax benefits to the company?
24 June 2013
There is not any tax benefit. but company wants to save cash .. and yes issue of share is also consideration and company can do it.
Ajay Mishra
(Expert)
24 June 2013
Hi
You can do so, but for this u will make an agreement with owner for subscribing shares instead of taking rent.Without consent/agreement you can not issue shares against rent.
You can do so, but for this u will make an agreement with owner for subscribing shares instead of taking rent.Without consent/agreement you can not issue shares against rent.
25 June 2013
if the receiver of the rent should pay any tax for receiving the equity shares instead of future income? i.e, the company wants to issue the equity shares in advance? what are the tax issues
Ajay Mishra
(Expert)
25 June 2013
You can not allot shares without receiving any consideration. Advance allotment is prohibited.
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