banner_ad

ROC Expenses Capitalisation

This query is : Resolved 
Profile Image

Profile Image

(Querist)
15 July 2011 The company has gone for the expansion, for that purpose it has increased it's authorised Share Capital. The ROC Expenses paid to increase the Authorised Share Capital has been taken in the Development Expenditure & later on at the end of the year that development expenditure is transfered to Plant & machinery A/c. Is the Companies Treatment is Correct? Will the Income tax Department accept that treatment?
Profile Image

Amol Gopal Kabra (CA,CS,DISA)

Profile Image

Amol Gopal Kabra (CA,CS,DISA) (Expert)
16 July 2011 The expenses for increase in Authorised Capital cant be capitalised to machinery. It is in contravention of Accounting Standards. The company has two options-
- Charge it off to Profit and Loss Account in the year of incurrence; or
- show it under the head miscellaneous expenses to be written off or adjusted, and amortise it over 5 years.

In either case, the expenditure wont be allowable as Section 35D allows only pre-incorporation expenses to be amortised over 5 years.
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
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details