Dear Sir
i want to know that whether a new company can issue equity share at premium under co act 2013
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Can a new pvt co issue equity shares at premium
Replies (3)
There is no bar in Companies Act. But you have to take care of Sec.56(viib) of Income Tax Act 1961. Amount in excess of fair market value of shares will be treated as other income and will be taxed accordingly.
how will be thefair market value determined, whether it is based on Net asset value or any other method
You have to refer to Rule 11U and 11UA for the methodology and take CA certificate for valuation under the rules.
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