accounting treatment of stamp duty & registration charges, Other Topics

[Harish uniyal]

what is the accounting treatment of stamp duty & registration charges paid in respect of increase the limit authorised share capital of private limited company ? whether it is revenue expenditure or capital expenditure Please tell me urgent

Posts / Replies

[CA Rachit Agarwal]

It can be debited to Profit/Loss account and would be treated as capital expenditure only. No carry over would be allowed in the Balance Sheet.

You will not be able to claim the deduction for the above expenditure under the Income Tax Act, 1961.

[rishi mohan]

Payment of registration charges and stamp duty in respect of increase in the limit of authorised share capital of private limited company  is a capital expenditure. It should be charged against the profit and loss account of the company.