FEES PAID TO ROC FOR INCREASING AUTHORISED CAPITAL

This query is : Resolved

CA.SIDDARAESHWARA GOWDA.A (Querist)
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07 June 2009 DEAR ALL,

MY QUERRY IS XYZ PVT.LTD.CO., PAID THE FEES TO ROC FOR INCREASING THE AUTHORIZED CAPITAL RS.1,75,000/- BEFORE COMMENCEMENT OF COMMERCIAL PRODUCTION(COMMERCIAL PRODUCTION STARTS ON 15.11.2008), WHETHER THE ABOVE AMOUNT WILL BE CONSIDERED AS PRE OPERATIVE EXPENSES OR AS PER SECTION 35D OR AS PER SECTION 37.

PLS CLARIFY....

THANKS IN ADVANCE.
CA.SIDDARAMESHWARA GOWDA A

Nilesh Damji Chheda

Nilesh Damji Chheda (Expert)
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07 June 2009
In respect your querry fees paid to roc for increase in authorised capital as per many judgment of high court & even by Apex court it is clarified that the fees paid for increase in authorised capital is capital in nature and not revenue in nature so the same cannot be allowed u/s. 37. furthr only expenses incurred during incorporation of Co. can be taken under 35D. however as per information provided by u that the commercial production has not started one ca take the same in pre-operative expenses

Radheyshyam Falod

Radheyshyam Falod (Expert)
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08 June 2009 Fees paid for extension of an industrial undertaking is allowed u/s 35D in five instalments subject to conditions specified in section 35D

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