M/s XYZ Pvt. Ltd. has increased its Authorised Capital by Rs. 2500000. The Turnover of the Co. is around 14.50 Cr. It has paid Rs. 30000 to the ROC for increasing its Authorised Capital. Whether such expense is t be capitalised or to be debited to Profit and Loss A/c?
Regards,
Devendra Kulkarni
| Originally posted by : Devendra | ||
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M/s XYZ Pvt. Ltd. has increased its Authorised Capital by Rs. 2500000. The Turnover of the Co. is around 14.50 Cr. It has paid Rs. 30000 to the ROC for increasing its Authorised Capital. Whether such expense is t be capitalised or to be debited to Profit and Loss A/c? Regards, Devendra Kulkarni |
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It would be treated as deferred revenue expenditure and would be taken to P&L and written off...
As per revised schedule - 6 ther exist only the concept of Capital or Revenue nature transcations and concpet of deffered revenue exp. is been scraped. Hence this is to be considered as revenue exp, and can be charged under FILING CHARGES head.
Captial exp. has beneift for more than 1 year but here there is no benefit ( Real and not notional - since there exist a notional benefit). hence they cant be categorised under this head keeping the above principle in mind. Distinction defers from fact and case to case also.
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