incresing authorised share capital

Hi

Rates & Taxes incurred at the time of Increase in authorised capital is Revenu in nature so it should be expesed out in the year in which it is incurred.

Preliminary expenses are thoses Expeses which are incurred at the time of incorporation of comapny.

Thanks

Hi,

Fees paid to the RoC for increase in authorised capital is a capital expenditure not deductible u/s 37(1) but deductible u/s 35D.

Citation:-

1. Punjab State Industrial Development Corporation Ltd 225 ITR 792 (Sc).

2.   Mohan Meakin Breweries Ltd 117 ITR 501 (HP)- says that Fees paid for increase of authorised capital is an inadmissable expenses.

Regards

Thanks Ankur for correcting me.

Please clerify that It will be treated as Preliminary Expenses in accounting as per companies Act also.

It will be treated as Preliminary Expenses as per companies act,1956 hamare sir ne bola tha

 Same as Ankur Garg sir

these expences will be treated as preliminary  according to Companies act and IT act 1961