writing off preliminary expenditure
This query is : Resolved
16 November 2010
dear sirs,
in my case a company was formed in 2002 and preliminary expenditure incurred during the year 2002 is shown under head miscellaneous expenditure for writing of in the forthcoming years. but after the introduction of AS-26 preliminary expenditure should be written off as an when incurred. whether the unadjusted amount of preliminary expenses can be completely write off in the year 2005 or it is to be written off over a period of years.yours valuable advice is expected
in my case a company was formed in 2002 and preliminary expenditure incurred during the year 2002 is shown under head miscellaneous expenditure for writing of in the forthcoming years. but after the introduction of AS-26 preliminary expenditure should be written off as an when incurred. whether the unadjusted amount of preliminary expenses can be completely write off in the year 2005 or it is to be written off over a period of years.yours valuable advice is expected
16 November 2010
AS 26 deals with Intangible/Research preliminary expenses. So you continue with existing Company law provisions for the company formation expenses.
16 November 2010
You may completly write off in 2005
17 November 2010
My understanding is the balance amount outstanding is to be written off in full since AS-26 has been notified as part of the Companies (Accounting Standards) Rules,2006 in order to comply with section 211 (3C) of the Companies Act,1956.
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
