treatment of amt paid to ROC for increasing share capital

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NIRU TULSYAN (Querist)
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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)
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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)
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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)
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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.

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