Accounting treatment for exp upto commencement of business
This query is : Resolved
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.
12 July 2012
capitalization needs to be done in preli. exp. a/c and w/f in 5 yrs
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