Section 56 (2) (viib)
This query is : Resolved
16 October 2013
The FMV of shares for the purpose of section 56 (2) (viib) .
Suppose a company makes an agreement to issue shares to a person in 4 installments, what should be the fmv that should be considered? FMV as on the date of agreement or fmv as on the date of issue of each of such shares? The shares will be kept in an escrow account by the company until the date of issue, and if the subscriber fulfills the conditions, shares will have to be allotted to him.
-Rushina Thakkar
Suppose a company makes an agreement to issue shares to a person in 4 installments, what should be the fmv that should be considered? FMV as on the date of agreement or fmv as on the date of issue of each of such shares? The shares will be kept in an escrow account by the company until the date of issue, and if the subscriber fulfills the conditions, shares will have to be allotted to him.
-Rushina Thakkar
Nikhil Kaushik
(Expert)
17 October 2013
valuation is to be done on the date of receipt of the consideration.
please refer to Rule 11U(j) of the Income tax Rules, 1962.
please refer to Rule 11U(j) of the Income tax Rules, 1962.
CA.Sourabh Sethia
(Expert)
18 October 2013
Date to be taken for cal of FMV is date on which the consideration as the case may be, is received by the assessee.
for your case since it is not clear from the facts that consideration is paid on the date of agreement or on the date of issue.
suppose it is taken that the same is paid on the date of agreement so the date for fmv would be date of Agreement.
for your case since it is not clear from the facts that consideration is paid on the date of agreement or on the date of issue.
suppose it is taken that the same is paid on the date of agreement so the date for fmv would be date of Agreement.
CA.Sourabh Sethia
(Expert)
18 October 2013
@ nitin kaushik
it is rule 11U
it is rule 11U
Nikhil Kaushik
(Expert)
18 October 2013
Hi sourabh. Which rule did I refer to??
18 October 2013
Rule 11U and Rule 11UA are applicable.
CA.Sourabh Sethia
(Expert)
18 October 2013
sorry i meant 11U & 11UA
Nikhil Kaushik
(Expert)
18 October 2013
Well I just prefer to give reference to specific rule. In this case, the question was when the valuation shall be done, which is prescribed under sub rule "j"
"(j) "valuation date" means the date on which the property or consideration, as the case may be, is received by the assessee."
"(j) "valuation date" means the date on which the property or consideration, as the case may be, is received by the assessee."
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