Company formation expenses in case of a pvt ltd company

Greetings,

Please let me know what is the effect of the Company Formation Expenses(like ROC fees, Professional Fees of CA/CS etc.) of a Company? I believe they've to capitalised under the section 'Miscellanesou Expenses' under the head Preliminary Expenses. Correct?

Now about writing off:

1) As per Income Tax Act, it has to be written off in 5 equal installments beginning from the year in which the Company was set-up.

2) Now, is there any way this can effected from the 2nd year to the 6th year. And what if the Company wants to write off the amount in 3 years or say 10 years?

Replies (3)
Hello friends, any ideas?

as per the revised Schedule VI, there is no such head as Miscellaneous Expenditure.  hence the expenses mentiod are requried to be shown under the head 'Other current Assets'

as per section 35D expenditure needs to be claimed in 5 years beginning from the year in whihc the business commences.  Henc if it is not claimed then the expendiutre is not claimed.

Hello,

To which Financial Year is the revised Schedule VI applicable? The due date of audit for Financial Year 2010-11 was 30th Sept 2011 so I assume it applies from Financial Year 2011-12 onwards?

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