Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: empanelment :: VAT Audit :: cpt :: form 3cd :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company
 
 
« News Headlines »
 How to respond to a tax notice under section 143
 Income-tax (22nd Amendment) Rules, 2017
 All about Exports under GST
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states

Rs 200 cr tax on BSE share transfers
March, 09th 2007

Demutualisation of the BSE is expected to fetch the income-tax department a Rs 200-crore windfall in long-term capital gains tax (LTCG). Member-brokers of the BSE, who will tender their shares in the offer for sale by the exchange, are expected to attract LTCG at the rate of around 33% on the consideration they receive by way of share transfer.

Assuming half of BSEs 750-odd members tender 50% of their total holdings (of 10,000 shares) at the rate of Rs 5,200 a share, as stated in the offer, each member may have to shell out around Rs 50-60 lakh as LTCG before adjustments.

BSE invited bids from shareholders (member-brokers) to participate in the offer for sale as a part of its endeavour to shore up public shareholding to 51% of its total equity.

The offer for acquiring 46.57 lakh shares, which opened on February 28, closes on March 9. According to informed sources, the offer has received encouraging response from the member-brokers and more than 300 are expected to tender half their holdings in the offer.

After the BSE was corporatised in August 2005, each of its 750 members were allotted 10,000 shares, with a face value of Re 1 each, in lieu of trading rights in the form of the BSE card.

Stock In Trade
300 brokers  Expected to tender 50% of their holdings in the offer
Rs 5,200 per share  Shares will not be accepted below this price
750 members  Allotted 10,000 shares, having face value of Re 1 each, in lieu of trading rights
 
The exchange recently sold 10% of its shares in two tranches of around 3.6 lakh shares each, to Deutsche Brse and Singapore Exchange Ltd (SGX) by way of fresh issuance of shares. Both transactions were at the rate of Rs 5,200 a share, which has become the de facto benchmark price for the offer for sale.

According to informed sources, the LTCG has been abolished for shareholders of listed companies but BSE being an unlisted company, any share transfer in its case will attract section 2 (42A) of the I-T Act, which clearly states that share transfer pertaining to an unlisted company would attract LTCG at the rate of 33%, in addition to the surcharge and education cess.

However, brokers say the incidence of LTCG may only average 15-20% as indexation is allowed when LTCG is imposed.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions