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(Querist)
11 May 2009
Dear Friends,
We have incurred the following Expenditures:-
1. Stamp duty for Share issue
2. Exp to increase Authorised Capital
3. New company incorporation fees paid to ROC
Whether they are Preliminary Exp.? How to treat the same in Accounts & Income Tax?
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taxindiaconnect

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taxindiaconnect (Expert)
11 May 2009 tax treatment of the above expenditure would be as folloaing -

- Stamp Duty shares - Capital expenditure - No disallownace under income tax act.

- Fees paid for authorised capital - Capital expenditure - No disallownace under income tax act.

New Company incorpration fees - Prelimenry expendtire - allowed in five installments under section 35D.

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CA Nitin Wadhwani

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CA Nitin Wadhwani (Expert)
11 May 2009 The above expenditure will be disallowed under Income Tax Act, while they will be charged to Profit & Loss in Accounts.
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