Dear All ,
wheather share issue expenses and debenture issue expenses are eligible for deduction as expense in profit and loss account in the year of issue or it would deffered as premil. expenses over the time limit given as per income tax act under section 35 D ?
can we write off the debenture issue expenses over the period of debenture tenure ? is there any provision for deduction under the companies act or not .
please advice on the above
Share issue exps are capital natur exps. because such exps results in change of share capital base....
Debenture issue exps are Deferred Revenue Exps. so as to w/off over the life of debentures or on other reasonable basis...
As per I.T Act, Share issue exps are not allowable but deb issue exps. are allowable over the tenure of debentures(These have been decided by High courts in some cases, sorry right now case names not available )
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