Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Sec Premium

Ameet (L) (1678 Points)

22 July 2010

Share issue exps can be sett off against Securities Premium but whether Exps for increase in authorised capital can set off against Securities premium ?

Reply
Follow
Share

2 Replies

CA Adarsh (Job) (82 Points)
Replied 22 July 2010

No Expenses incurred for increasing the Authorised Capital can not be Setoff from Securities Premium.

Rather the expense will not be allowable expense under Income Tax .

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

Securities Premium can be used only for the purposes specified in Sec 78 of the Cos. Act and usage for increasing authorised cap. is not specified in the Sec. so sec. premium cannot be utilised for the purpose.