A private limited company raised its authorised capital and paid stamp duty and ROC fees, so i want to know whether such expenditure is capital or revenue and how such expense is allowed in income tax.
Atulkumar Lohiya (42 Points)
28 March 2008A private limited company raised its authorised capital and paid stamp duty and ROC fees, so i want to know whether such expenditure is capital or revenue and how such expense is allowed in income tax.
CA Himanshu Awasthi
(Manager (Advances))
(520 Points)
Replied 28 March 2008
well it is a capital expenditure and it should be capitalised. i m not damn sure and u shd wait for reply from some experts here
C.A. M.Com. Suhas A. Nagpure
(CA)
(1175 Points)
Replied 31 March 2008
I think it is Miscellaneous Expenses & it will be shown on asset side of B/s till it will be written off.
C.rajesh
(Articles)
(1392 Points)
Replied 01 April 2008
the expenditure is treated as priliminary expenses and should be written off over a period of five years in equal instalmenmts as per sec.35D of income tax act.
Rachana
(CA Final)
(434 Points)
Replied 01 April 2008
Its preliminary exp. agree with rajesh's reply
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