Sec Premium

Stat Audit 831 views 2 replies

Share issue exps can be sett off against Securities Premium but whether Exps for increase in authorised capital can set off against Securities premium ?

Replies (2)

No Expenses incurred for increasing the Authorised Capital can not be Setoff from Securities Premium.

Rather the expense will not be allowable expense under Income Tax .

Securities Premium can be used only for the purposes specified in Sec 78 of the Cos. Act and usage for increasing authorised cap. is not specified in the Sec. so sec. premium cannot be utilised for the purpose.


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