kabirsen
(student)
(251 Points)
Replied 16 December 2009
capital expenditure
case refernce: punjab state industrial development corporation..
Asif Khan
(Taxation executive)
(410 Points)
Replied 16 December 2009
but i have heard that is allowable u/s 35D
kabirsen
(student)
(251 Points)
Replied 16 December 2009
35d is abt pre-incorporporation exp and specifies a list of expense which does not include "increase of authorised share capital"
35d inter alia includes
legal charges for moa/aoa, printing of moa , expense in connection to issue , public subscripttion, enderwriting commission ,brokerage, prospectus drafting expense
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 16 December 2009
Yea i guess there was a recent case when it was disallowed..some bank or so...
AJAY PRATAP
(FINANCIAL CONSULTANT)
(72 Points)
Replied 16 December 2009
The fees paid for increase in authorised capital is capital in nature so the same cannot be allowed u/s. 37.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8639 Points)
Replied 17 December 2009
It is capital expenditure for Income Tax Act. however, the company can charge it to profit and loss account. But it will be disallowed in Income Tax computation and will form a part of permanent difference.
Archit Goyal
(Learning Professional)
(344 Points)
Replied 17 December 2009
sure yaar just allow in 37(1)
VIGNESH
(Manager Finance &Accounts)
(327 Points)
Replied 17 December 2009
Fees paid to increase authorised capital is not a allowable expenses, so it shold be capitalised
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 17 December 2009
| Originally posted by : kabirsen | ||
 |
35d is abt pre-incorporporation exp and specifies a list of expense which does not include "increase of authorised share capital" 35d inter alia includes legal charges for moa/aoa, printing of moa , expense in connection to issue , public subscriptttion, enderwriting commission ,brokerage, prospectus drafting expense |
 |
I agree wid Kabir..
CAclubindia
