11 December 2016
we have taken franchisee where in pay franchisee fee of 5 lakh from partners personal account as our limited liability partnership is not incorporated.
1)whether this expense will be eligible for amortisation
2) whether we have to show 5 lack capital as initial capital while forming LLP
12 December 2016
For LLP there is no obligation of minimum capital requirement, so it is your discretion to show extent of capital.
Franchise fees non refund able paid if it is paid for annually than you can written off same year, if it is spread for certain fixed period than same can be apportioned equally for franchise period.
CAclubindia
