pre incorporation expenses
This query is : Resolved
rramashis mishra
(Querist)
21 July 2011
expenses incurred towards temporary office in a hotel before incorporation of the company-whether to be capitlized or to be expensed off?
21 July 2011
Which type of hotel expenses? If it related with the company formation then it is to be capitalised otherwise no deduction will be available if it is of personal nature.
21 July 2011
It has to be capitalised.
Akhil Agrawal
(Expert)
21 July 2011
It has to be capitalized. These are pre incorporation & not pre commencement Exp. Mr Agrawal is tlking from Income tax Point of view
rramashis mishra
(Querist)
22 July 2011
Thanx a lot for ur reply.....
I just went through AS 26..where it is said that these type of expenses (preliminary expenses)fail to meet the definition of an asset and hence need to be expensed off when incurred.
I m confused...plz help me out...
I just went through AS 26..where it is said that these type of expenses (preliminary expenses)fail to meet the definition of an asset and hence need to be expensed off when incurred.
I m confused...plz help me out...
rramashis mishra
(Querist)
22 July 2011
Agarwal Sir,These expenses are not of personal nature...
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