ROC filing fee

This query is : Resolved

karthik P (Querist)
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21 October 2009 An unlisted Pvt Ltd Company has increased its paid-up capital and paid Rs. 109,500 to ROC as fee. The auditor of the Company has disallowed even the 1/5th of the fee also while computing the provision for income tax for the year 08-09. i read that ROC filing fee is not a revenue expenditure which imply that it is capital expenditure and can be written-off over a period. can someone explain me whether the auditor is correct. If not mention the section under which the fee paid can be written-off or amortized?

CA. Bikash Bogi

CA. Bikash Bogi (Expert)
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21 October 2009 Filing Fees to ROC is a capital Expenditure as per Supreme court in the Brook Bond India case. The stand taken by the auditor is not correct

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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21 October 2009 Your auditor is correct. Section 37 deals with the allowance of above expenditure. Since it will not generate any income it is being disallowed.

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