Greetings to all. We started a LLP in which we shown capital as 1 Lakh for registration from MCA. To complete this process we already spent nearly 50,000 as legal charges and deposits paid for office premises. For that 50,000 we have all legal documents. But now again my auditor telling to deposit 1 lakh in bank account. His point is we can not show that 50,000 as capital. Only we can claim as loan from partners. Can't we show this 50,000 spent from capital. Do we need to deposit 1 lakh again in bank.
3 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 29 November 2017
Yes...
If it's refundable...
If it's refundable...
THAJUDDIN SAYYAD
(3 Points)
Replied 29 November 2017
Dear Raja sir,
It means we can show that as capital. But what about the charges we paid for registration. IT act says that we can show 1/5 of that as expense every year for next consecutive 5 yrs. Is that expenses also we can show as paid from capital. This answer will surely help many startups who having dilemma about the amounts they pay from peronal funds before company get registered.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 29 November 2017
Registration charges is your expenditure and some of your assets...
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