Capitalisation of expenses on name change

This query is : Resolved 

14 May 2008 When some expenditure is incurred at the time of name change,then how to treat that expenditure in accounts.i.e shall we show that as preliminary exp.not written off.

14 May 2008 Expenses incurred on name change is a revenue expenditure.

14 May 2008 YES NAME CHANGE EXP. LIKE ROC FEES,PRINTING AND STATIONARY ( PRINTING REVISED MEMORANDUM AND ARTICLES,CHANGE OF NAME BOARDS,LETTER HEADS,INV/BILL BOOKS,VISITING CARDS,ACCOUNTS BOOKS ETC..) ARE REVENUE EXP. UNDER RATES AND TAXES OR STATURORY COMPLIANCE EXP./PRINTING AND STATIONARY.

WHILE PREL. EXP ARE SPECIFIED UNDER SEC 35 D OF IT ACT UNDER VARIOUS DETALED HEADS,WHICH CAN BE WRITTEN OFF IN 5 YEARS.THEY INCLUDE EXP. UNDER PROJECT REPORT PREPARATION,PREPARATION OF FESASIBITY REPORT ,ENGG. SERVICES ,MARKET SURVEY ET...EITHER BEFORE COMMENCEMENT OF BUSINESS OR IN CONNECTION WITH EXTENTION OF AN EXISTING IND. UNDERTAKING .
IN CASE OF A COMPANY SUCH EXP. INCLUDE PRINTING M/A,DRAFTING CHARGES,FEES FOR REGISTERING THE CO.,PUBLIC ISSUE,UNDERWRITING PRINT AND ADVERTISE PROSPECTUS ETC...
WHERE AS EXP. RELATING TO INCREASE OF AUTHORIDSED SHARE CAPITAL WILL QUALIFY AS CAPITAL EXPENDITURE AS PER CASE LAW DECIDED.
WE COMPLIMENT YOU ON BEHALF OF CA CLUB FORUM FOR YOUR LOOKS .WE HAVE MISTAKEN YOUR PHOTO AS THAT OF GENELIA,CINE ACTRESS.
R.V.RAO


17 November 2008 It is a revenue expenses. Classify under rates & taxes

05 June 2011 Off course company is already registered so it will be revenue exp



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries