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Exp to increase authorised share capital

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Avinash Nangalia

Avinash Nangalia (Querist)
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12 October 2013 What is the logic behind disallowing exp to increase authorised share capital?

CA Vijeta Verma

CA Vijeta Verma (Expert)
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12 October 2013 They are capital in nature as they increase the overall capital base of the company

Ganeshbabu K

Ganeshbabu K (Expert)
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12 October 2013 Yes,, it is dislloawed because of capital in nature...

however if there is no fresh infusion of capital,,means share capital issued or bonus shares issued,,in such case expences paid to ROC for increase in share capital is allowed as it is considered as revenue expences
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So refer to facts of case and decide on disallowance/allowance
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Refer below link..will be useful

https://www.caclubindia.com/judiciary/fees-paid-to-the-roc-are-revenue-expenditure-2003.asp#.UllLlFCnqWZ

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