Anyone please explain how to vouch Share Issue Expenses???
3 Replies
Sumit Jain
(CA)
(4760 Points)
Replied 28 March 2009
this is miscallaneous exp.
to be recorded in asset side of balance sheet
not to write off completely from p/l
Yogesh
(Manager)
(50 Points)
Replied 05 July 2009
Treatment of share issue expenses are outside the scope of AS 26, hence it can be carry forward and can be written off over period of three years as per industry practice. It can be shown as misscelaneous expenditure under application of funds in balance sheet side. However, the treatment of same under income tax depends on nature of share issue expenditure. if it is initial expenditure for new company, it is allowed over period of five years as per section 35 d of the Income tax act. Since amortisation may be different under normal account and tax account, it may give rise to deferred tax. However for subsequent expendituer on share issue of existing company, it is not allowed under income tax and no deferred tax will be created on the same.
Recent Topics
- Issue with refund for person who has filed for rel
- How to take ITC for October 2024 GST Payment in PM
- How to refund a wrong transaction Phone Pe?
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
Related Threads
CAclubindia
