Bonus shares
This query is : Resolved
Guest
Guest
(Querist)
30 November 2009
Whether we should consider the Bonus shares issued by the company as a revenue expenditure or capital expenditure of the company? I read many case laws all giving contradictory answers...so got confused. Please explain in detail.
30 November 2009
This issue has been settled by Suprement Court in case of General Insurance Corporation. Court has ruled that issue of Bonus shares by capitalisation of reserves neither increases the capital employed by the company nor confers any enduring benefit to the company. Hence all the expenses (like stamp duty etc.) incurred on this account are of revenue nature.
30 November 2009
Issue of Bonus Shares by the company is Revenue Expenses
30 November 2009
agree
Guest
Guest
(Querist)
02 December 2009
Thanks for replying.....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
