hi,
can anyone suggest me the correct treatment of share application money for private limited company ?
please also suggest the time limit of keeping the same in books of accounts
Menu
treatment of share application money
Replies (2)
Share Application money can be kept for as much period as desired by the company.
There is no time limit. But Income tax Deptt. may question if kept for a long period.
It can be shown in the Balance Sheet after Paid up Share Capital as "Share Application Money" (pending allotment).
Agree...
However do not forget to check the terms of subscripttion agreement between the prospective investor and Issuer Company regarding refund of share application money etc.
Regarding time limit to convert such share application money into capital the law is silent. However as per practice (specifically mention/mandatory requirement in FEMA regarding foreign money) allot share with 6 months of the receipt of application money.
Regards
Recent Threads
- Waste Management services
- Seeking Clarity: New Transport Allowance Limits (D
- Query regarding Consolidated Gift Deed for Bank Tr
- TDS u/s194IB - Joint Ownership
- Free GST Reconciliation Tool in Google Sheets R
- NRI return after due date refund case
- TDS u/s 194J - training honorarium
- WHERE TO REGISTER UNDER PTRC AND PTEC ACTS ?
- Key Corporate Compliance Requirements for Private
- Gst Non Filling Return Notice
Related Threads
CAclubindia
