Treatment of Expenses?
This query is : Resolved
23 June 2010
There is a company which has not commenced its business yet. The company is having some establishment expenses. I want to know whether the company has to prepare a Profit & loss account or it can show the expenses as pre-operative exp. since the business has not been started? Whether the company can avoid the preparation of profit & loss account? Will the expenses be allowed under the Income Tax Act if shown as pre-operative?
Plz reply if anybody knows the answer...
Its urgent...
Plz reply if anybody knows the answer...
Its urgent...
Badri Kharat
(Expert)
23 June 2010
Yes, you have to show it as pre operative expenses, you can avoide prepration of profit and loss account
25 June 2010
But the company is a Pvt. Ltd. Co.
Plz provide the basis for avoidance of preparation of Profit & Loss Account.
Plz provide the basis for avoidance of preparation of Profit & Loss Account.
Dhirajlal Rambhia
(Expert)
01 August 2023
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