35D - Capital employed calculation for extension of business
This query is : Resolved
30 September 2009
Friends,
We have a paidup share capital of 20 Cr at the balance sheet date. Out of that Rs 5 Cr is raised only in the last quarter, for which we have incurred capital expenses and we wish to claim the same u/s 35 D. Now in this case, whether the capital employed is to calculated as 5% of Rs 20 Cr or 5% of Rs 5 Cr?
Also please provide the format for computation of capital employed, if any?
We have a paidup share capital of 20 Cr at the balance sheet date. Out of that Rs 5 Cr is raised only in the last quarter, for which we have incurred capital expenses and we wish to claim the same u/s 35 D. Now in this case, whether the capital employed is to calculated as 5% of Rs 20 Cr or 5% of Rs 5 Cr?
Also please provide the format for computation of capital employed, if any?
01 October 2009
Capital employed is to be calculated as 5% of Rs 20 Cr. and not of 5 cr.
Capital employed means issued share capital
plus debentures and long term borrowings(from FIs OR Banks) as on the last date of the previous year.
Capital employed means issued share capital
plus debentures and long term borrowings(from FIs OR Banks) as on the last date of the previous year.
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