Legal charges

CA Rajesh Keshri (CA) (175 Points)

21 June 2011

Does stamp duty payments or franking charges should be treated as legal charges for accounting entry?

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8 Replies

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 22 June 2011

stamp duty for purchase of asset would be capitalized

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 22 June 2011

othervise revenue under the head legal charges

Rajnikant Vadigoppula (CA, CS And CMA Final) (919 Points)
Replied 22 June 2011

yes stamp duty is a legal charge.

if it is incurred for purchase of asset then it is to be added to cost of asset otherwise it should be transferred to profit and loss a/c

satish kumar Chauhan (accountant) (347 Points)
Replied 23 June 2011

rajni kant is right

CA.Sampath Rao (In Practice) (78 Points)
Replied 23 June 2011

rajni kanth is right

Priyanka Bhatnagar (Accounts & Finance) (44 Points)
Replied 23 June 2011

Franking charges to be capitalised with the cost of asset or to be charged to P& L

Anoopa H P (Member of ICAI CS Executive) (192 Points)
Replied 23 June 2011

Originally posted by : Rajnikant Vadigoppula
	yes stamp duty is a legal charge. if it is incurred for purchase of asset then it is to be added to cost of asset otherwise it should be transferred to profit and loss a/c

I Agree

Vishal (A/c) (Accountant) (67 Points)
Replied 31 January 2019

It attract TDS for Legal charges or not

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