Re: Preliminary Exp. U/s 35D

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Manoj Mangal (Querist)
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01 November 2008 Whether the following expenditure is eligible for amortisation U/s 35 D:

1. ROC fees for authorished capital
2. Stamp fees for Form No.5 i.e. for return of alltmnet
3. Filling fees for commencemnet of business.

pl. solve the above query....

With regards
Manoj Mangal

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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01 November 2008 Yes.

Manoj Mangal

Manoj Mangal (Querist)
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01 November 2008 but sir, i think that these ROC and stamp fees are not for registering the company under the provisions of the Companies Act, 1956 (1 of 1956) as mentioned in section U/s 35 D;

Are u sure that there are eligible for amortisation ?

Pl. clarify for the same..

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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01 November 2008 1) Authorised capital forms part of registration of company.
2)Form 5 falls under share issue
3)Commencement of business subsection (2)

Manoj Mangal

Manoj Mangal (Querist)
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01 November 2008 Thank u very much sir,

Now i m satified with your opinion....

Reetika Goel

Reetika Goel (Expert)
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01 November 2008 Even if its an existing company and you want to increase your authorised capital for which you file Form 5, you will be allowed to amortize those expenses in 5 equal installments as per section 35D of IT Act, 1961.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 November 2008 Reetika's view is correct vide supreme court decision in the case of Punjab State Industrial Development Corporation Ltd reported in 225 ITR 792.

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