Preliminary expenses and pre operative expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 Please tell me about the difference of preliminary expenses and pre operative expenses ?

b.
what is treatments of preliminary and pre operative expenses

c.
can we all expenses transfer to preliminary and pre operative expenses?

d.
their is any limit for expenses transfer to preliminary and pre operative expenses.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 December 2013 1. preliminary expenses refer to incorporation expenses. whereas pre-operative expenses refer to expenses incurred between the incorporation and start of operations of the company.

2. preliminary expenses are amortised over 5 annual installments under section 35D.

Pre-operative expenses are capitalized in the assets.

3. What all expenses are you referring to

4. expenses considered as preliminary expenses are defined under 35D. so what is allowed there can be claimed as preliminary expense. Pre-operative expense shall also be need to be considered in the same light as to whether or not it should be capitalized.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 December 2013 read this

https://www.vaishlaw.com/article/Tax%20Treatment-Rohit-Garg.pdf

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