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Treatment of expenses as per companies act

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This query is : Resolved

CA Sanjay Baheti (Querist)

23 May 2014 In case of my client being a Pvt Ltd Co.,how the following will be treated in Company's Books as per Companies Act as well as AS issued by ICAI as under:-

i) Expenses incurred in increase in Authorized Share Capital like Stamp duty,ROC registration Charges,Professional Charges for CAS etc

ii)Processing Charges as collected by the Bank towards new sanction of fund based as well as non-fund based Limits particularly after commencement of Commercial production as the amount is material i.e nearly Rs 5 to 6 Lacs during F.Y.2013-14

Rupesh Jain

Rupesh Jain (Expert)

24 May 2014 increase capital exp. is share issue exp. claim u/s 35D .

and for processing charge for limit exp. u/s 37 (1). according to period due tot this limit processing charges for one year period. you can bifurcate the prepaid exp. and current year exp.

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