banner_ad

ROC EXP

This query is : Resolved 
Profile Image

Profile Image

(Querist)
05 August 2010 EXPENDITURE INCURRED FOR INCREASE IN AUTHORISED CAPITAL IS REVENUE EXPENDITURE OR WILL BE CAPITALISED AND WRITTEN OFF IN 5 YEARS AS PRELIMINARY EXPENSES
Profile Image

Aditya Maheshwari

Profile Image

Aditya Maheshwari (Expert)
05 August 2010 It is a very arguable matter as share issue expenses are not defined as per AS - 26 and whether this type of fees is covered under it or not and hence you may write it off in one year itself or may write off in 5 years.

Ideally and also Many companies do capitalise and write it off over a period of 5 years.

In Income Tax the same will be allowable u/s 35D in 5 equal instalments only subject to conditions mentioned in that section are satisfied.
Profile Image

Rasesh

Profile Image

Rasesh (Expert)
05 August 2010 Agree with Aditya. however, i have also observed that in books such expenses are expensed off in the first year itself by many companies.
Profile Image

Aditya Maheshwari

Profile Image

Aditya Maheshwari (Expert)
06 August 2010 Yes in books such expenses are expensed off in the first year itself by most of the listed companies but in case of unlisted companies there is no consensus.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
06 May 2026
Account Assistant / Article Clerk

V.K. Ranjan & Co(Chartered Accountants)

New Delhi

B.Com

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details