treatment of amt paid to ROC for increasing share capital

Save Share

This query is : Resolved

NIRU TULSYAN (Querist)

08 October 2008 can anyone help me with thie querry??

a pvt ltd co. has increased its share capital for which it has paid Rs.195000 towards ROC filing fees. Whether this entire amt can be debited to P/L??what will be its treatment as per the co's act as well as IT Act??

CMA Jitendra Singh

CMA Jitendra Singh (Expert)

08 October 2008 As per IT act ,Rs.195000 paid towards to increase authorised capital will be treated as Capital Expenditure .Please refer Bharat Corbon & Ribbon Mfg v'CIT Delhi

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

08 October 2008 The fees paid to ROC,in the referred question,can be claimed u/s 35D vide supreme court decision in the case of Punjab state industrial development Corporation Ltd; 225 ITR 792.

NIRU TULSYAN

NIRU TULSYAN (Querist)

10 October 2008 thank u sirs!!but teh problem is that the co has debited the entire amt to P/L a/c & filed its IT Return also . Is there anything the co can do to correct its mistake ?? The co can obviously file a revised return but if it claims it u/s 35D ,ie 1/5th then the entire calculation of Deffered tax will change effecting the co's balance sheet also.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now