Hi every body.
My company is going to establish a representative office in USA. As per FEMA circular 7B one company can expend upto 25% of its networth for the initial expenses. So if I expend that much of amount whether that will capitalise in HO book in India or it will be allowed as an revenue expenditure.
Those are deferred revenue expenditure which can be subsequently written off over a period of time. Just like preliminary expenses.
it is my opinion that initial expenses expenses of capitalised in the books of H O (in india) and written off over the time as a preliminary expenses
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