Preliminary exp

Final 438 views 3 replies

hi
i wanted to know about expenditure incurred during extension of the company .
whether it can be treated as preliminary exp or not?
as per income tax act (section 35d) preliminary exp applicable even for extension
how its dealt in accounting std or in company law ?
plz do reply....

Replies (3)

plz any one reply

As per my opinion it should be capitalized as per accounting, even we make another unit .

Wait for experts ..

i think they shd be capitalised. that means such exp shd be added to cost of extension.until such addition takes place , they r treated as miscellaneous expenditure in d balance sheet.correct me if i m wrong


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