Share Transfer at par?

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S Menon (Querist)
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05 October 2010 Hi Sir,

Please let me know whether it is possible to transfer the shares of a private company at par, when the value per share based on net worth comes to around 126/-?

Thanks & Regards
Smenon

Ajay Mishra

Ajay Mishra (Expert)
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05 October 2010 Hi

Yes, You can transfer of private limited company share at par. There is no restriction for doing so.

Regards

S Menon

S Menon (Querist)
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05 October 2010 Hi Sir,
Thanks a lot for this speedy reply. Can you please give me some references, a case law or a section, which justifies your answer?

Thanks in advance

Smenon

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 October 2010 You can transfer but also read the same with provisions of Section 56(2)(vii) of Income tax act where the buyer of share can be taxed for the difference of the amount if shares received from other than relatives.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 October 2010 If the transferee is a non-resident, valuation as per FEMA has to be necessarily complied with.

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