banner_ad

Promoter

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
26 November 2014 Can a promoter company make expenditures for setting up a project in its promotee company? Is it allowable and is there any case law regarding this?
Profile Image

Amol S Joglekar

Profile Image

Amol S Joglekar (Expert)
26 November 2014 Yes. The same shall be regarded as pre incorporation expenses.
If the expenses are incurred after the incorporation, it will amount to LOAN from Promotor Company to Promotee Company.
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
27 November 2014 Thanks for your Expert view Sir. But can the promoter company book expenses in its books of accounts?
Profile Image

Amol S Joglekar

Profile Image

Amol S Joglekar (Expert)
27 November 2014 No, it can NOT book the expenses. It is a loan given to Promotee company for the expenses to be incurred by the Promotee company
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
28 November 2014 Thanks a lot Sir for the guidance.
Profile Image

Amol S Joglekar

Profile Image

Amol S Joglekar (Expert)
28 November 2014 You are most welcome.
.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details