A/C treatment of ROC fee paid for increase of share capital

IT SHHOULD BE TREATED AS CAPITAL EXPENDITURE ,HENCE CAPITLISED AND AMORTISED IN THE  PERIOD OF 10 YRS MAX

period of amortisation will be 3 to 5 years

It can be amortised if increase in share capital brings extention of new industrial undertakings, otherwise capitalised

ROC expenses allowed for accounting purpose.however, it would not be allowed for income tax purpose.

For the purpose of Accounting, ROC fee for increase in Share capital is to be expensed in the period of payment. Say, Rates and Taxes a/c--------Dr                 xxx

                                 To Bank a/c                                                 xxx

For the purpose of Income tax, if the increase is for Paid up capital, its a revenue expenditure and allowed as an expenditure. If its for the increase in Authorised capital then its a capital expenditure and allowed in 5yrs U/s35D.

Very informative and clearly described great effort Mr. Krishna