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
- About TDS & Income Tax
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Not able to file ITR
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- FEMA regulation Act. for inward remitance
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
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
