Initial expenses of setting of branch

Aswini Kumar Mohanty (CA Job) (42 Points)

30 November 2012  

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.