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Expenses relating to trade mark registration


17 July 2014 Dear Experts,

How to book Expenses relating to get trade mark registration for a pvt ltd company. we paid 55000/- to a consultant it includes
fee for 5 applications @ 7500 total 37500/-
and professional fees to consultant 17500
total is 55000/-.

then how to book these expenses in company books of accounts.

Thanks In Advance.
Narendra Kumar M
9949952188.

19 July 2014 Dear Narendra, Trademark is an intangible asset and the expenses incurred t/w registration should be capitalised and professional fee for consultants should be treated as revenue expenditure. So the entry shall be as follows: Trademark (Asset) a/c Dr 37,500 Professional fee a/c Dr 17,500 To Consultants a/c 55,000 Note: If tds is applicable on professional fee add a JV on it for 17,500. Regards, Vijay Kumar


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