Pre operative expenses

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kalpana maheshwari (Querist)

13 June 2013 if a co. incurs audit fees,roc filing fees of various forms like form 2, 32, annual filing forms, printing and stationery, travelling exp and other general exp before commencement of its operation in a financial year, then what will be its treatment in accounts and as per income tax?
are they preoperative expenses? what will be the treatment in books if they are same?

Rupesh Jain

Rupesh Jain (Expert)

13 June 2013 claim exp as current year exp in income tax act
and under co. act treat as preoperatie exp. and write off in 5 year

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kalpana maheshwari

kalpana maheshwari (Querist)

15 June 2013 but sir,
as per revised schedule VI of cos act, now there is no scope for preliminary and properative exp to be shown as assets

many experts have given opinion to write them off completely

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 June 2013 Yes. presently after revised schedule VI implementation, there is no concept of the miscellaneous Expenses under asset, what ever is there need to be adjusted with p&l a/c balance only. so you can debit the expenses in p&l a/c

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