fees paid for increasing authorised capital

No, It is capital expenditure

Regd

 capital expenditure

case refernce: punjab state industrial development corporation..

but i have heard that is allowable u/s 35D

 35d is abt pre-incorporporation exp and specifies a list of expense which does not include "increase of authorised share capital"

35d inter alia includes

legal charges for moa/aoa, printing of moa , expense in connection to issue , public subscripttion, enderwriting commission ,brokerage, prospectus drafting expense

 Yeh it should be capitalized

its a capital exps

 Yea i guess there was a recent case when it was disallowed..some bank or so...

The fees paid for increase in authorised capital is capital in nature so the same cannot be allowed u/s. 37.

It is capital expenditure for Income Tax Act. however, the company can charge it to profit and loss account. But it will be disallowed in Income Tax computation and will form a part of permanent difference.

agree..wid d above ans.

sure yaar just allow in 37(1)

yes it is capital expenditure

Fees paid to increase authorised capital is not a  allowable expenses, so it shold be capitalised

Originally posted by : kabirsen
	35d is abt pre-incorporporation exp and specifies a list of expense which does not include "increase of authorised share capital" 35d inter alia includes legal charges for moa/aoa, printing of moa , expense in connection to issue , public subscriptttion, enderwriting commission ,brokerage, prospectus drafting expense

I agree wid Kabir..