Can a private limited company buy back it's shares at Book Value or it has to be done at Fair Market Price.
What value will be considered for payment of Additional Income Tax (BBT) @ 23.072%
Kindly help....
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Valuation of shares of a pvt. ltd company
Replies (2)
yes private ltd company can buyback its share. Section 115QA will apply and company has to pay BBT @ 20% and surcharge @ 10% if total buyback amount is greater than 1 cr.
FMV need to be determined as per method determined in rule 11UA of income tax rule or by DCF valuation.
FMV need to be determined as per method determined in rule 11UA of income tax rule or by DCF valuation.
No The New Vlaution rule is not for the purpose of Section 115QA that is only for Section 50 CA and Section 56. The Tax has to be paid on the Buyback value but there is no requirment for any valuation. it can be at any value as dertmined by the Compnay in its Borad and General meeting.
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