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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
