If a Pvt Ltd company incurred expenditure for increas in authorize share capital (ROC fees, stap duty etc) and subsequently incurred exp on issuing new shares, than
1) What will be the Accounting treatment for such expenses? 2) What will be the IT treatment of such expenses?
07 January 2011
As per my thinking after incorpration whatever expenses made on issue or re-issue of share capital that are Revenue Exp., therefore it should be treated as revenue exp. in both accounting and income tax.
CAclubindia
