valuation rules

Valuation – As A Profession

CA, CS, CMA - Valuation is based on the relation between demand and supply as a basic principle. It had been explained in simpler terms by the great Indian Guru and thinker, CHANAKYA long ago, that Value is a measure of yield....

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Chicago Method of Valuation for Start up Companies

CA, CS, CMA - The Chicago Method is also known as the Venture capital method. It is a valuation approach for businesses and is used by Private Equity and Venture Capital Investors. The Chicago method merges the elements of the Discounted Cash Flow and a Multiple-based valuation. Developed by and named after the First Chicago bank, the Chicago meth...

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Perquisite valuation of annual accretion to balance of PF & Pension

CA, CS, CMA - Method for computation of Perquisite Value as referred in section 17(2)(viia) of Income Tax Act, 1961 (the Act) in respect of annual accretion to the balance of recognised provident Fund (RPF), Approved Superannuation Fund and National Pension scheme (NPS). Finance Act 2020 had amended the provisions of section 17(2) of the Act and substi...

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Premise of Value while valuing an asset or a liability

CA, CS, CMA - This article will cover on the premises of value that shall be considered while valuing an asset or a liability, as per the valuation standards issued by the Valuation Standard Board of the ICAI. 1. Meaning of premise of value: The ICAI Valuation Standard -101 (IVS-101) defines premise of value to be the conditions and […]...

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Gold and Silver rates from 01.04.1981 to 31.03.2021

CA, CS, CMA - Value of gold contained in gold ornaments should be reduced by 14 to 20 per cent of ruling rates of standard gold, as per the practice prevalent in the bullion market and the amount of reduction has to be worked out in the following manner...

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Valuation : Professional Insight

CA, CS, CMA - Valuation is the most fundamental term in finance but is extremely crucial to understand while deriving the value. Also, several events in recent past have transpired to provide an indication of the public concern on valuation and the impact on shareholders and other stakeholders. Fund Providers, both equity and debt, have been active in ...

Read More

Educational Material on ICAI Valuation Standard 103 – Valuation Approaches & Methods

CA, CS, CMA - Valuation is an exercise which is unique for every transaction and requires efforts, involvement, application of mind and thought for each assignment separately. Only guiding principles can be adopted and considered by the valuer while undertaking each assignment. Further, ‘value’ is an estimate of the value of a business or assets, a...

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Advisory to follow the ICAI Valuation Standards 2018

CA, CS, CMA - Advisory to follow the ICAI Valuation Standards 2018 while conducting any type of Valuation Engagement to ensure uniformity and transparency....

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ICAI & ICAI RVO issues Concept Paper on All About Fair Value

CA, CS, CMA - Financial reporting in India has undergone a significant transformation owing to the adoption of Indian Accounting Standards (Ind AS) and fair value is the guiding principle in financial reporting across the globe. The Institute of Chartered Accountants of India (ICAI) converged accounting standards with IFRSs and accordingly, the financi...

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List of Indian Valuation Standards effective from 1st July, 2018

CA, CS, CMA - Indian Valuation Standards as issued by ICAI effective for the valuation reports issued on or after 1st July, 2018 The Institute of Chartered Accountants of India (ICAI) issues Valuation Standards as a benchmark for Valuation Practices applicable for Chartered Accountants Recognising the need to have the consistent, uniform and transparen...

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In absence of any defect DCF valuation method of Assessee cannot be rejected

Intelligrape Software Pvt. Ltd. Vs ITO (ITAT Delhi) - Intelligrape Software Pvt. Ltd. Vs ITO (ITAT Delhi) When the assessee Company had opted for valuation of unquoted equity shares in accordance with DCF method as prescribed under clause (b) of specific Rule 11UA(2) as applicable, the AO/CIT(A) had no power/authority to change such valuation methodolo...

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Actual results of later years cannot be used for Valuation of shares: ITAT

M/s Flutura Business Solutions Pvt. Ltd. Vs ITO (ITAT Bangalore) - Flutura Business Solutions Pvt. Ltd. Vs ITO (ITAT Bangalore) We are of the view that, the Assessing Officer has erred in considering the actuals of revenue and profits declared in the future years as a basis to dispute the projections. At the time of valuing the shares as on 16.04.2012, the actual r...

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DGOV guidelines not overrules Customs Valuation Rules

Sunland Alloys Vs C.C. (CESTAT Ahmedabad) - Sunland Alloys Vs C.C. (CESTAT Ahmedabad) The issue under consideration is whether the DGOV guidelines are over and above Customs Valuation Rules? In the present case, the appellant imported Aluminium Scrap under various Bill of Entries and the price declared in the Bill of Entry is as per the invoi...

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Customs Valuation Rules- Invoice price cannot be rejected without cogent reasons

Guru Rajendra Metalloys India Pvt Ltd Vs C.C. (CESTAT Ahmedabad) - CESTAT are of the clear view that merely based on DGOV circular also, value cannot be enhanced which is without authority of law. It is clearly held that DGOV circular cannot override the provisions of Valuation Rules. ...

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S. 56(2)(viib): AO cannot discard assessee’s method of Share Valuation

Narang Access Pvt. Ltd. Vs DCIT (ITAT Mumbai) - Narang Access Pvt. Ltd. Vs DCIT (ITAT Mumbai)  In the present case the valuation done by the assessee for valuing its shares is on the basis of DCF method and the AO could not have substituted it by NAV method rather he should have arrived at another value, if any, by applying DCF method only. [&he...

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Governance Structure of Registered Valuers Organisation 

Circulars No. IBBI/RVO/033/2020 - (23/04/2020) - The Companies (Registered Valuers and Valuation) Rules, 2017 (Rules) envisage Registered Valuer Organisations (RVOs) to act as front-line regulators for development and regulation of the valuation profession. The RVOs have the responsibility to admit, develop, monitor and discipline the members of t...

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CAs cannot do Valuation of unquoted equity shares under DCF method

Notification No. 23/2018-Income Tax [S.O. 2087(E)] - (24/05/2018) - Amendment in Rule 11U and 11UA omitting reference to the term accountant, thereby permitting only merchant bankers to determine the FMV of unquoted equity shares as per the Discounted Free Cash Flow Method ...

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Draft rules of valuation of FMV in respect of Trust or institution

Draft Notification No. F. No. 370142/21/2016-TPL - (24/10/2016) - Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution ceases to exist as charitable organization or converts into a non-charitable organization....

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Corrigendum to the new perquisite valuation rules for A.Y. 2010-11

Notification No. 2/2010-Income Tax - (12/01/2010) - Notification No. 2/2010-Income Tax at page 20 of the Gazette Notification, in sixth line of clause (B) of sub-rule 2, for “amount attributable to official use of the vehicle provided that the following conditions are fulfilled”, read “amount of charges met or reimbursed by the employer as redu...

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Inclusion of After Sale Service and Pre-delivery Inspection Charges in the assessable value

Circular No. 909/29/09-Central Excise - (11/12/2009) - Since these services are provided free by the dealer on behalf of the assessee, the cost towards this is included in the dealer's margin (or reimbursed to him). This is one of the considerations for sale of the goods (motor vehicles, consumer items etc.) to the dealer and will therefore be governed ...

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Recent Posts in "valuation rules"

Valuation – As A Profession

Valuation is based on the relation between demand and supply as a basic principle. It had been explained in simpler terms by the great Indian Guru and thinker, CHANAKYA long ago, that Value is a measure of yield....

Read More
Posted Under: Finance |

Chicago Method of Valuation for Start up Companies

The Chicago Method is also known as the Venture capital method. It is a valuation approach for businesses and is used by Private Equity and Venture Capital Investors. The Chicago method merges the elements of the Discounted Cash Flow and a Multiple-based valuation. Developed by and named after the First Chicago bank, the Chicago meth...

Read More
Posted Under: Finance |

Perquisite valuation of annual accretion to balance of PF & Pension

Method for computation of Perquisite Value as referred in section 17(2)(viia) of Income Tax Act, 1961 (the Act) in respect of annual accretion to the balance of recognised provident Fund (RPF), Approved Superannuation Fund and National Pension scheme (NPS). Finance Act 2020 had amended the provisions of section 17(2) of the Act and substi...

Read More
Posted Under: Finance |

Premise of Value while valuing an asset or a liability

This article will cover on the premises of value that shall be considered while valuing an asset or a liability, as per the valuation standards issued by the Valuation Standard Board of the ICAI. 1. Meaning of premise of value: The ICAI Valuation Standard -101 (IVS-101) defines premise of value to be the conditions and […]...

Read More
Posted Under: Finance |

Gold and Silver rates from 01.04.1981 to 31.03.2021

Value of gold contained in gold ornaments should be reduced by 14 to 20 per cent of ruling rates of standard gold, as per the practice prevalent in the bullion market and the amount of reduction has to be worked out in the following manner...

Read More
Posted Under: Finance | ,

Valuation of shares under Net Asset Method

Valuation of shares under Net Asset Method (Guidelines issued by the ICAI) Valuation of shares: Formula to calculate the Value per share under Net Asset method is as follows: (Total Assets – Liabilities – Preference shareholders) ÷ Total No. of outstanding Equity shares A) Net Assets: All asset should be valued at market value. P...

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Posted Under: Finance |

Valuation on Intangible Assets

Intangible asset means an asset that is not in physical nature but have monetary value. Eg – Patents, Copyrights, Brand name, Tradenames, Goodwill and Software. As per Para21 of INDAS 38 Intangible Assets, Notified by MCA: An intangible asset should be recognized only when following conditions are satisfied i.e. a. future economic benef...

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Posted Under: Finance |

Valuation : Professional Insight

Valuation is the most fundamental term in finance but is extremely crucial to understand while deriving the value. Also, several events in recent past have transpired to provide an indication of the public concern on valuation and the impact on shareholders and other stakeholders. Fund Providers, both equity and debt, have been active in ...

Read More
Posted Under: Finance |

Educational Material on ICAI Valuation Standard 103 – Valuation Approaches & Methods

Valuation is an exercise which is unique for every transaction and requires efforts, involvement, application of mind and thought for each assignment separately. Only guiding principles can be adopted and considered by the valuer while undertaking each assignment. Further, ‘value’ is an estimate of the value of a business or assets, a...

Read More
Posted Under: Finance |

Valuation by Special Valuation Branch in Custom

The valuation of goods is always a matter of concern especially where the goods are imported into India. The value determination may influence the price of goods in India and may impact the competition environment in India. Therefore, proper valuation by custom officer becomes more important and challenging. As per Custom Act, 1962, the v...

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Posted Under: Finance |

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