A group of individuals incorporate a company X Private Limited with Rs. 1,00,000 and 10,000 shares of Rs.10/- each, then bring in further capital at a premium of INR 10,000 per share thereby increasing the total share capital to INR 10,00,00,000/- without altering the number of shares? what is the basis of this valuation? Is some ting like this allowed in India, since it is a newly incorporated entity? If not, what is the guideline to be followed. This is going to be a pure private limited company
Menu
Valuation of Share Premium
Replies (1)
Hi,
The valuation of company can be done on the basis of the company product is going to Manufacture or developement of a product. what is future of the product is taken place in the market. If the similar product or item is already in the market what is the value of the same items compare with that and can be done. Blindly we cannot value of Rs.10,000/- per share. If there is no documentation problem will arise.
Recent Threads
- Tax Audit If you show Loss
- GST Tax invoice Value Rs..234000
- Can I claim benefit under 54F if I sell my equity
- Income tax refund 25/26
- Who is responsible for paying GST Liability (If th
- Excess Payment on RCM
- AOC4 auto population of previous year data
- Exports against INR PO payable by Domestic Company
- Which websites are best for government exam prepar
- TDS on maturity payment of LIC of india
Related Threads
CAclubindia
