AS - 13 Investments

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2010 whether the brokerage, STT and other incidental expenses incurred at the time of purchase of equity shares should be added to the investments cost or they can be charged off to profit and loss account.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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09 August 2010 Brokerage & other incidental expenses incurred at the time of purchase of equity shares should be added to the investments cost & STT should be charged to the P & L A/c as the same are now allowable deduction as per Income Tax Act in case shares are held as investment. So they should be accounted as per this in books also.