accounting treatment of stamp duty & registration charges

[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

[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.

AI Summary

Stamp duty and registration charges treated as capital expenditure, charged to profit and loss and not tax-deductible.
Stamp duty and registration charges for increasing authorised share capital are treated as capital expenditure and charged to the Profit and Loss account; they are not carried forward as a balance sheet asset and are not allowable as a revenue deduction under the Income Tax Act.