Treatment of exp on share capital increase & allotment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 January 2011
Dear All,
If a Pvt Ltd company incurred expenditure for increas in authorize share capital (ROC fees, stap duty etc) and subsequently incurred exp on issuing new shares, than
1) What will be the Accounting treatment for such expenses?
2) What will be the IT treatment of such expenses?
Pls explain with example if possible
Thanks
If a Pvt Ltd company incurred expenditure for increas in authorize share capital (ROC fees, stap duty etc) and subsequently incurred exp on issuing new shares, than
1) What will be the Accounting treatment for such expenses?
2) What will be the IT treatment of such expenses?
Pls explain with example if possible
Thanks
07 January 2011
As per my thinking after incorpration whatever expenses made on issue or re-issue of share capital that are Revenue Exp., therefore it should be treated as revenue exp. in both accounting and income tax.
let the other experts show their views on this.
Regards!!!
Dinesh S. Adhikari
let the other experts show their views on this.
Regards!!!
Dinesh S. Adhikari
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 January 2011
Hi,
Can other also advice on above?
Thanks
Can other also advice on above?
Thanks
09 January 2011
It may be accounted as deffered revenue expenditure.
As per income tax section 35D, 1/5 deduction is allowed in 5 years.
As per income tax section 35D, 1/5 deduction is allowed in 5 years.
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