PPI (Profit prior to incorporation)

This query is : Resolved

Prerna (Querist)
Follow

24 July 2011 My BCom text book says that interest to vendor is a pre-incorporation expenditure. But it is divided in the time ratio applicable for the period from date of take over of business to date of settlement of PC (Purchase consideration). Hence if the settlement of PC is after date of incorporation, the interest is charged as pre and post incorporation expenditure.
So how is it called a pre-incorporation expenditure?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

25 July 2011 Is it as per clause of agreement and has it been due to late payment of the consideration. What is the terms of agreement. Is is that the physical possession shall be given only after payment then no question will come for interest payment otherwise the agreement will decide the issue

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vidit Ratanghayra

CA Varun Gupta

Pawan Haryani

Naresh Dhawan

Tanishka Khandelwal

Subscribe Now

PPI (Profit prior to incorporation)

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

Manager- Finance and Compliance

GST CONSULTANCY

Article Assistant

CA Final