Accounting treatment for exp upto commencement of business
This query is : Resolved
Shashank Kotak
(Querist)
12 July 2012
Dear Sirs,
What is the accounting treatment for the following :
Expenses incurred upto commencement of business such as rent etc - should it be treated as a pre-liminary expenses and w/off for 5 years as per sec 35D ??
The expenses upto incorporation stage needs to be w/off for 5 years which is known to me as per IT Act, 1961
but is the pre-operative expense referred above should be given same treatment ?? Kindly clarify...
Kindly mention the a/cing treatmet which needs to be passed in Co's books and to be considered in IT Act,1961.
What is the accounting treatment for the following :
Expenses incurred upto commencement of business such as rent etc - should it be treated as a pre-liminary expenses and w/off for 5 years as per sec 35D ??
The expenses upto incorporation stage needs to be w/off for 5 years which is known to me as per IT Act, 1961
but is the pre-operative expense referred above should be given same treatment ?? Kindly clarify...
Kindly mention the a/cing treatmet which needs to be passed in Co's books and to be considered in IT Act,1961.
CA Lokesh Pokharna
(Expert)
12 July 2012
capitalization needs to be done in preli. exp. a/c and w/f in 5 yrs
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