TMI BlogFair market value of assets in certain casesX X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the share shall be the observable price of such share on the stock exchange: Provided that where the share is held as part of the shareholding which confers, directly or indirectly, any right of management or control in relation to the aforesaid company, the fair market value of the share shall be determined in accordance with the following formula, namely :- Fair market value = (A+B) /C Where; A= the market capitalisation of the company on the basis of observable price of its shares quoted on the recognised stock exchange; B= the book value of liabilities of the company as on the specified date; C= the total number of outstanding shares: Provided further that where, on the specified date, the share is listed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... persons for distribution of assets in the event of dissolution of the firm or association, or, in the absence of any such agreement, in the proportion in which the partners or members are entitled to share profits and the sum total of the amount so allocated to a partner or member shall be treated as the fair market value of the interest of that partner or member in the firm or the association of persons, as the case may be. (5) The fair market value of the asset other than those referred to in sub-rules (2), (3) and (4) shall be the price it would fetch if sold in the open market on the specified date as determined by a merchant banker or an accountant as increased by the liability, if any, considered in such determination. (6) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the specified date, the share is listed on more than one stock exchange, the observable price in the aforesaid formula shall be in respect of the stock exchange which records the highest volume of trading in the share during the period considered for determining the price; (b) the share in the foreign company or entity is not listed on a stock exchange on the specified date, the value of all the assets owned by the foreign company or the entity shall be determined in accordance with the following formula, namely :- Fair market value of all the assets = A+B Where; A = fair market value of the foreign company or the entity as on the specified date as determined by a merchant banker or an accountant as per the internationally ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny or the entity is registered or incorporated or any of its agencies, who fulfils the following conditions, namely :- (a) if he is a member or partner in any entity engaged in rendering accountancy or valuation services then,- (i) the entity or its affiliates has presence in more than two countries; and (ii) the annual receipt of the entity in the year preceding the year in which valuation is undertaken exceeds ten crore rupees; (b) if he is pursuing the profession of accountancy individually or is a valuer then,- (i) his annual receipt in the year preceding the year in which valuation is undertaken, from the exercise of profession, exceeds one crore rupees ; and (ii) he has professional experience of not less than ten ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of section 9 ; (viii) the terms merchant banker and recognised stock exchange shall have the meaning as assigned to them in rule 11U; (ix) balance sheet ,- (a) in relation to an Indian company, means the balance-sheet of such company (including the notes annexed thereto and forming part of the accounts) as drawn up on the specified date which has been audited by the auditor of the company appointed under the laws relating to companies in force; and (b) in any other case,means the balance-sheet of the company or the entity (including the notes annexed thereto and forming part of the accounts) as drawn up on the specified date and submitted to the relevant authority outside India under the laws in force of the country in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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