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FORM 23ACA

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This query is : Resolved

seema singla (Querist)

04 November 2008 A pvt. ltd co. having no business transactions incurred some pre-operative exps like audit fee, legal fee and bank charges. My query is that whether these expenses will appear in Form 23ACA or not.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

04 November 2008 No business transactions since when --Pl clarify.

seema singla

seema singla (Querist)

04 November 2008 The co. was incorporated on 30/08/2005.Only statutory requirements are followed. No business transaction till now.So these pre-operative expenses should appear in Form 23ACA or not?
Thanx

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

04 November 2008 No because Form 23 ACA is profit and loss a/c. The company need not prepare profit and loss a/c in the given situation. The said expenses may be suitably grouped in an a/c viz.,Pre production exps, or project development exps etc.,depending on the future plan of the company, and may be carried to balance sheet.

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