Discontinued business
This query is : Resolved
19 September 2012
PLS HELP...
A FOREIGN COMPANY HAD OPENED ITS PROJECT OFFICE IN INDIA ONLY FOR CWG CONTRACT... THEREAFTER THE PROJECT OFFICE IS NOT DOING ANY OTHER CONTRACT IN INDIA.. WILL THIS AMOUNT TO DISCONTINUED BUSINESS.. WHAT WILL BE THE TREATMENT OF EXPENSES INCURRED BY THE PROJECT OFFICE IN THE CURRENT YEAR, HOWEVER THERE IS NO INCOME IN THE CURRENT YEAR.PLEASE GUIDE WITH REFERENCE TO LAW AND JUDGEMENTS, IF ANY
A FOREIGN COMPANY HAD OPENED ITS PROJECT OFFICE IN INDIA ONLY FOR CWG CONTRACT... THEREAFTER THE PROJECT OFFICE IS NOT DOING ANY OTHER CONTRACT IN INDIA.. WILL THIS AMOUNT TO DISCONTINUED BUSINESS.. WHAT WILL BE THE TREATMENT OF EXPENSES INCURRED BY THE PROJECT OFFICE IN THE CURRENT YEAR, HOWEVER THERE IS NO INCOME IN THE CURRENT YEAR.PLEASE GUIDE WITH REFERENCE TO LAW AND JUDGEMENTS, IF ANY
Amol S Joglekar
(Expert)
19 September 2012
L&T stopping cement business is the eample of "discontinued business" In you case it is very difficult to prove to be discontinued unless you have some RESOLUTION to that effect
19 September 2012
IF THE PROJECT OFFICE IS NOT EARNING ANY INCOME BUT INCURRING EXPENSES.. ARE THESE EXPENSES ALLOWABLE???
Amol S Joglekar
(Expert)
19 September 2012
Yes, by all means so long as business is not shut down,
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