One Indian Pvt ltd company has acquired substantial shares in one foreign company, which is listed outside India. Company has also enter into agreement with this foreign co. to supply of technical know how to the investor co. Investment by Indian co in to foreign co is also covered in the agreement of Supply of Know how.
Further, Indian company has appointed its nominee on the BOD of foreign co. for this purpose Indian co has paid Rs. 10 lacs to the stock exchange on which foreign co is listed as a Verification fess as per norms of foreign stock exchange.
Now, Whether AS per AS-13, Rs. 10 lacs can be a cost of Investment of the Shares acquired in the foreign co. ??
CAclubindia
