Jan 03, 2019
Companies may not face 30% tax bump over valuation premium
Companies facing a 30-percent tax bill over valuation premium may not face the tax bump as the government has recently asked officials not to scrutinise such transactions, according to a report by The Economic Times. The clarification comes after many firms received tax demands after premiums were paid over the 'fair price' or 'fair market value' for fresh equity or preference shares. The demands could be withdrawn in the coming weeks, a source told the paper.