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Issue shares at premium

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(Querist)
15 December 2013 x ltd incorporated in the last month, shares are allotted to subscribers and co. didn't start business till date. the company wants to issue further shares at premium. whether company can issue shares at premium? if yes, what is the consequences in companies act and income tax act? another way to issue shares at premium. like future propects of the comapny. thanks in advance
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Nikhil Kaushik

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Nikhil Kaushik (Expert)
15 December 2013 well you can issue shares at premium subject to valuation rules. However, if the issue price is in excess of valuation price as per Rule 11U and 11UA, it shall be taxable in the hands of the company under Section 56(viia).
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CS,CA F,Numrologi TusharSampat

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CS,CA F,Numrologi TusharSampat (Expert)
16 December 2013 For companies act viewpoint refer ICDR Regulations,2009.
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