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

AI Summary

Stamp duty and registration charges for increasing share capital deemed capital expenses, non-deductible under Income Tax Act, 1961. A discussion on the accounting treatment of stamp duty and registration charges for increasing the authorized share capital of a private limited company concluded that these expenses are considered capital expenditures. Both respondents agreed that such costs should be debited to the profit and loss account and not carried over in the balance sheet. Additionally, these expenses are not deductible under the Income Tax Act, 1961.