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ROC Filing Fee

Pavan (Student) (50 Points)

12 October 2007

Hi,

Recently we have paid Rs. 20 Lakhs as ROC fees for Increasing authorised share capital. Can it be allowed as deduction under Income tax Act ?

Regards

Pavan jinuga

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11 Replies

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 13 October 2007

Yes, ROC fee is not a allowable expense but a capital exp.(You may amortise it in next five years)

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CMA Gul S (Program Manager) (5910 Points)
Replied 13 October 2007

ROC Fee is Allowable Expenses with Amortisation for 5 years

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 13 October 2007

Fees paid for increasing share capital are capital expenditure - Fee paid to Registrar of Companies for increasing authorised capital will result in an advantage of enduring nature and is capital expenditure - Mohan Meakin Breweries Ltd. v. CIT (No. 2) [1979] 117 ITR 505 (HP)/Groz-Beckert Saboo Ltd. v. CIT [1986] 160 ITR 743 (Punj. & Har.)/Union Carbide India Ltd. v. CIT [1987] 165 ITR 678 (Cal.)/Bharat Carbon & Ribbon Mfg. Co. Ltd. v. CIT [1981] 127 ITR 239 (Delhi)/CIT v. Aditya Mills [1990] 50 Taxman 120 (Raj.)/Alembic Glass Industries Ltd. v. CIT [1993] 202 ITR 214 (Guj.)/CIT v. Tungabhadra Industries Ltd. [1994] 207 ITR 553 (Cal.)/Hindustan Machine Tools Ltd. (No. 3) v. CIT [1989] 175 ITR 220 (Kar.)/CIT v. Multi Metals Ltd. [1991] 188 ITR 151 (Raj.)/Wood Craft Products Ltd. v. CIT [1993] 204 ITR 545 (Cal.).

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 13 October 2007

I am loading a file of a case>> plz read the facts and case from that file...

Prakash Popat (3134 Points)
Replied 13 October 2007

Treat as Deffered Revenue Expenditure.

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(Guest)

It is treated as capital expenditure to be amortised in 5 years

Miss Komal Mantri (Chartered Accountant ) (1974 Points)
Replied 14 October 2007

EXPENSES INCURRED FOR INCREASING AUTHORISED CAPITAL IS NOT ELIGIBLE FOR DFEDUCTION UNDER SECTION 35 D AND THE SAME SHALL BE TREATED AS CAPITAL EXPENDITURE AND DISALLOWED....IT HAS BEEN JUDICIALLY DECIDED IN SOME CASE.... I LL LET U KNOW THE CASE IN A DAY...

Rahul Gupta (Article) (47 Points)
Replied 16 October 2007

This roc fees is a capital expenditure and will be a complete dead loss to you simply speaking no benefit will be there to you under the income tax act.

Abhishek (Chartered Accountant) (142 Points)
Replied 17 October 2007

roc filing fee is not an allowable expense under the it act...

(Guest)

roc fee structure of all states

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CA Sanjeev Kr Jain (c a) (1477 Points)
Replied 19 November 2008

Originally posted by :Dashrath Maheshwari
"	Yes, ROC fee is not a allowable expense but a capital exp.(You may amortise it in next five years)	"

Hello Dashrath Maheshwari as you advised that the roc fee for issue of additional shares i.e authorised capital can be set off in next 5 year, can you pl mail some case law to support this view ? vibcondelhi @ indiatimes.com