Transfer price of shares

We have a small business. In our business we have a holding company and another plantation co. in 2011 the holding co was issued shares by the plantation co at a substantial premium. The face value of the shares was Rs 10/-. The holding co and the plantation co has some common directors. Now the holding co has an opportunity to sell the shares (97%) of the plantation co. The book value of the plantation co shares is in the negative. without attracting any tax liability at what price can the holding co transfer the shares of the plantation co.? Since the book value of the shares of the plantation co is negative, can we sell the shares at Re1/- or at the Face Value of Rs 10/-? Of course we relaise in so doing there will be a loss in the holding Cos books since the shares were originally issued aat a premium. help will be much appreciated.

 

Replies (1)

Take  the guidance of your CA who is looking the matters of the company who has issued the shares, they can guide better 

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