TaxTMI 
TaxTMI 
Dear Sir, One of my client is selling it's own shares in exchange of immovable property? No monetary consideration is involved. Is it advisable as per law?.
Company selling its own shares in exchange of immovable property
17 Jul 2023 
2 Replies 
4058 Views Asked by
Valuation requirement: issuance of shares for immovable property must follow a qualified valuation and statutory compliance.
Issuance of a company's shares for immovable property requires a valuation report by a qualified valuer to fix the consideration; if the share value in the valuation is lower than the stamp duty-based value of the property, stamp duty value adjustment rules under tax law apply. The exchange must meet Companies Act compliance-board and shareholder approvals, requisite filings and disclosures-and be at arm's length to avoid tax adjustments and penalties. (AI Summary)
Issuance of a company's shares for immovable property requires a valuation report by a qualified valuer to fix the consideration; if the share value in the valuation is lower than the stamp duty-based value of the property, stamp duty value adjustment rules under tax law apply. The exchange must meet Companies Act compliance-board and shareholder approvals, requisite filings and disclosures-and be at arm's length to avoid tax adjustments and penalties. (AI Summary)