what is the accounting treatment of stamp duty & registration charges paid in respect of increase the limit authorised share capital of private limited company ? whether it is revenue expenditure or capital expenditure
Please tell me urgent
Menu
ACCOUNTING TREATMENT
Replies (13)
capital expenditure
it is capital expenditure
PRELIMINARY EXPENSES AND IT IS CAPITAL EXPENDITURE.
capital expenditure
Such expenses should be booked under the head 'Preliminary Expenses' and should be written off over a period of 3 to 5 years.
So basically the treatment is very akin to what we give to deferred revenue expenditure.
Cheers !
CMA Hemant Joshi
it comes under preliminary expenses
and it should be written off over a period of 5 yrs(equal installments)
If you have enough profit for the current year, you can treat, the whole amount as exenditure.
To increase the profit in P&L account, the companies may take as "Preliminary Expenses".
It is not compulsory to treat under - CAPITAL EXPENDITURE.
| Originally posted by : Balakrishna S | ||
 |
If you have enough profit for the current year, you can treat, the whole amount as exenditure. To increase the profit in P&L account, the companies may take as "Preliminary Expenses". It is not compulsory to treat under - CAPITAL EXPENDITURE. |
 |
It should be shown under the head " Preliminary Expenditure" and should be written off over the period of 3/5 years.
| Originally posted by : Balakrishna S | ||
|
|
If you have enough profit for the current year, you can treat, the whole amount as exenditure. To increase the profit in P&L account, the companies may take as "Preliminary Expenses". It is not compulsory to treat under - CAPITAL EXPENDITURE. |
|
it is a preliminary expenditure and should be writtn of over 3-5 years
under which head revaluation reserve is taken
stamp duty paid for increse authorised capital is in nature of deffered revenue expenditure and it is writt of in five years
Recent Topics :
- On which amount 200% penalty under section 270A is
- RECEIVED INTIMATION U/S 399 FOR TDS PAYMENT ON PRO
- How do CA firms track SEBI/AMFI circulars and dead
- Jurisdictional validity of Sec 148 notice after fa
- Taxable Income or Not
- GST Input Tax Credit (ITC) on Camera Purchase &
- What makes CA Himanshu Singla different from other
- TAX TREATMENT AND ACCOUNTING ENTRIEOF PERQUISITES
- Gifting money to my father-in-law (my husband's da
- GSTR-1 JSON from marketplace exports (Myntra / Ama
Related Topics :
CAclubindia
