ROC Fees for increase Authorised Capital

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A existing company  has paid ROC fees to increase Authorised capital. The proceeds of the issued capital has been utilised for setting up a new unit.

My question is- Where the amount paid of Rs. 1,00,000/- to ROC can be deductable under any provision of Income Tax Act. Please provide answer with related sections of the I. Tax Act and case laws if available.

Thanks

Manoj

 

Replies (3)

As per Section 37 of income tax Act, ROC fees paid to increase the authorised share capital is of capital nature since its provides benefit to the company for more than 1 year. However registration fees to increase in share capital - Bharat carbon & Ribbon Mfg company limited Vs CIT (1979) 117 ITR 549 (Cal.), CIT Vs Kisenchand chellaram (Ind) Private Limited (1981) 130 ITR 385 (Mad).

agreed with Yash,

Roc FEE for Increase in authorised capital must be write off in 5 years.

this is not allowable in a single year

 

 

Roc Fees Paid to Increase Authorised Capital is in Capital Nature so it is not treated as Revenue Expenditure

but if is used for expansion purpose it should be allowed as deffered revenue expenditure.

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