Treatment of exp on share capital increase & allotment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2011 Dear All,

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?

Pls explain with example if possible

Thanks

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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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.

let the other experts show their views on this.

Regards!!!
Dinesh S. Adhikari

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2011 Hi,

Can other also advice on above?

Thanks

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