one of my clients incurred huge expenditure at the time of start up of business operations. what is the treatment of such a huge expenditure as per the books of accounts and also as per income tax act.
please advise. our client is a private limited company
If the expenditure was incurred beofre teh incorporation of the co then the same shall be shown under the hear Other Current Assets in the B/S and amortized over a period of 10 years.
Also under the I-T Act the deduction u/s 35D shall be claimed. Please refer the section 35 D for more details of how to calculate the deductino.
CAclubindia
