Treatment of Preliminary Expenses
This query is : Resolved
21 April 2011
For FY 2008-09 company has incurred preliminary expenses for incorporation of company of Rs.75,843 which are deducted from loss incurred by co. & same are shown on Asset side side of B/s. How to deal with prel exp for preparing the balance Sheet for FY 2009-10.
22 April 2011
hello shradhha
preliminary expenses is dealt with in sec 35AD of the income tax act
according the expenses shall not be allowed over and above 5% of the capital employed or cost of project
Once you have identified the allowable deduction it can be claimed in 5 equal installments beginning form the year of commencement of business
so in your case you can write off preliminary expenses to the extent of 1/5 of RS.75483 in fy 2009-2010
preliminary expenses is dealt with in sec 35AD of the income tax act
according the expenses shall not be allowed over and above 5% of the capital employed or cost of project
Once you have identified the allowable deduction it can be claimed in 5 equal installments beginning form the year of commencement of business
so in your case you can write off preliminary expenses to the extent of 1/5 of RS.75483 in fy 2009-2010
22 April 2011
Sir thanks for the reply but I am still have a doubt because the whole of preliminary exp charged to year 2008-09 in which they are incurred can i still charge 1/5 in yr 2009-10.plz reply
09 May 2011
preliminary expenses the allowable deduction it can be claimed in 5 equal installments beginning form the year of commencement of business.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Reporting Income under Section 44ADA
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR 1: Details for showing Exempt Income
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR selection for salaries and capital gain less than L
- ITR returnFY25-26
- ITR validation error - Balance sheet is not filled
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
