Preincorporation expenses
This query is : Resolved
SANJAY KUMAR AGARWAL
(Querist)
19 August 2012
What is the rule for writting off the preliminery/pre-incorporation expenses in the books of a private limited company. Is there any such rule in the compaqnies act or is it done as per the Income Tax act. please explain in detail?
CA Amit Jaiswal
(Expert)
20 August 2012
The rule of 20% is for income tax purposes.
For books accounts you would have booked entire amount at the time of expenditure.
Further this will give rise to Deferred Tax.
Best of Luck.....
For books accounts you would have booked entire amount at the time of expenditure.
Further this will give rise to Deferred Tax.
Best of Luck.....
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