banner_ad

Securities Premium Account

This query is : Resolved 
Profile Image

Profile Image

(Querist)
31 May 2008 A company has issued QIP & warrants. for the same company has paid commission of Rs.2500000/-to lead managers.Right now we are showing it under miscellaneous expenditure not written off. Can it be deducted from Securities Premium Account as section 78 of Company Act,1956.
Profile Image

Jitender

Profile Image

Jitender (Expert)
31 May 2008 in my opinion,it can't be done.
Profile Image

CA supriyo saha

Profile Image

CA supriyo saha (Expert)
02 June 2008 it can be done as such adjustment is permissible as per sec.78 as it states that securities premium can be utilised for
1) writting off preliminary expenses, disc. on issue of debentures,
2) paying premium on redemption of preference shares, debentures,
3) for issuing fully paid up bonus shares,
4) for paying expenses on underwriting of shares and debentures.
as per item 4) you can adjust the comm from securities premium account.
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
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details