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Capital expense or revenue expense

A/c entries 541 views 1 replies

Hi

Amount  paid  for increase in authorized capital (for which we have got GAR-7 challan for filing form 5 & 23) should be considered as capital expentiture or revenue expenditure?

Also explain under which group it should be accounted??

please guide.

 

Replies (1)
As decided in Punjab State Industrial Development Corporation Ltd. (SC). It is not a revenue exp. And is not deductible. You can charge it from profit and loss account for accounting purpose but in computation of taxable income, it ll be disallowed.


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