what is the accounting treatment of stamp duty & registration charges paid in respect of increase the limit authorised share capital of private limited company ? whether it is revenue expenditure or capital expenditure
Please tell me urgent
13 Replies
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 26 September 2010
capital expenditure
ravi tej
(ca final)
(392 Points)
Replied 26 September 2010
PRELIMINARY EXPENSES AND IT IS CAPITAL EXPENDITURE.
Hemant
(Student)
(243 Points)
Replied 26 September 2010
Such expenses should be booked under the head 'Preliminary Expenses' and should be written off over a period of 3 to 5 years.
So basically the treatment is very akin to what we give to deferred revenue expenditure.
Cheers !
CMA Hemant Joshi
radhika rawat
(student)
(93 Points)
Replied 26 September 2010
it comes under preliminary expenses
and it should be written off over a period of 5 yrs(equal installments)
Balakrishna S
(Chief Executive)
(24 Points)
Replied 27 September 2010
If you have enough profit for the current year, you can treat, the whole amount as exenditure.
To increase the profit in P&L account, the companies may take as "Preliminary Expenses".
It is not compulsory to treat under - CAPITAL EXPENDITURE.
Ankit Jain
(Article (Final))
(110 Points)
Replied 27 September 2010
| Originally posted by : Balakrishna S | ||
 |
If you have enough profit for the current year, you can treat, the whole amount as exenditure. To increase the profit in P&L account, the companies may take as "Preliminary Expenses". It is not compulsory to treat under - CAPITAL EXPENDITURE. |
 |
CA FAISHAL
(Accountant Auditor Tax Consultant)
(32 Points)
Replied 27 September 2010
It should be shown under the head " Preliminary Expenditure" and should be written off over the period of 3/5 years.
(Guest)
| Originally posted by : Balakrishna S | ||
|
|
If you have enough profit for the current year, you can treat, the whole amount as exenditure. To increase the profit in P&L account, the companies may take as "Preliminary Expenses". It is not compulsory to treat under - CAPITAL EXPENDITURE. |
|
vijay
(Accountant)
(902 Points)
Replied 27 September 2010
it is a preliminary expenditure and should be writtn of over 3-5 years
ajay rawat
(Accountant)
(21 Points)
Replied 03 December 2010
under which head revaluation reserve is taken
DHARMENDRA THAKKER
(TAX ASSISTANT AND AUDITOR)
(22 Points)
Replied 17 September 2011
stamp duty paid for increse authorised capital is in nature of deffered revenue expenditure and it is writt of in five years
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