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TMI BlogInterest on share application money - revenue expenditureX X X X Extracts X X X X X X X X Extracts X X X X ..... Can Interest paid on share application money recevied by a Private Limited Company to the applicants to whom shares are not alloted be treated as revenue expenditure ? - Reply By DEV KUMAR KOTHARI - The Reply = Please give full facts. How the capital received by way of share application money was used is relevant. If it was used to meet revenue expenses, to purchase trading stock etc, or to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... off other libility, then interest paid on refund of shae application money can be allowed u/s 36 or S 37However, if used for capital expenses, then interest for the period till assets are put to use can be treated as capital expenses. In this case also in some circumstances interest may be allowed. - Reply By Rohit Doshi - The Reply = Thanks for ur reply. The share application money was used for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of Trading Stock & paying off creditors.So from ur reply it seems that the Interest paid would be allowed as revenue expenditure. Secondly how long can we continue to hold the share application money recevied & pay interest on it ? Is there any time limit as far as Private Limited Co is concerned regarding refund of share application money recevied ? - Interest on share application money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - revenue expenditure - Query Started By: - Rohit Doshi Dated:- 26-11-2009 Income Tax - Got 2 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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