pre incorporation profits

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2009 if date of incorporation and commencement of business is not same which date is to be considered to decide pre and post in corporation period

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
Follow

26 November 2009 date of incorporation

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2009 But a company gets the right to do bisiness after certificate of commencement does it matter any way

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2009 thanks a lot

shakuntala chhangani

shakuntala chhangani (Expert)
Follow

27 November 2009 My dear, when we use the word " profits prior to incorporation", it means that profits from the date of takeover to the date of incorporation is considered as pre incorporation profit as a company can not earn revenue profit before its legal birth, any profit earned upto incorporation is Capital profit. A co. takes certificate of commencement after incorporation, if we calculate profits from that date then there will be no concept of pre-incorporation profits no????? Regards, CA Shakuntala Chhangani

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