Dear All,
An Unlisted Company wants to make a Buy Back its shares upto 24.99% of total equity shares throuth SR and payment would be made from Security Premium Account and Free Reserve.
Company raised money with premium for a project but till then impletation of project have been significantly delayed due to economic conditions.
Further Auditor has also given an adverse remark for delay due to economic conditions and said that this time extension charges donot increase the future economic benefits for the project.
My query, could we use such Security premium amount, even yet we have not started the project.
and being a shareholders does any stamp duty or income taxes arise on us.
Regards,
ACS Amit Arora
Please quick reply or comment is appreciable.
Note section 77A is notwithstanding section for Security premium as funding.
CAclubindia
