A pvt ltd is incorporated in F.Y. 2017-18 and commencement of production is in F.Y. 2018-19.
Co. incurred pre incorporation expenses viz consultation fees, printing of MOA, ROC stamp duty etc. and after incorporation but before commencement of production viz audit fees, bank charges, directors interest nd salary.
What will be accounting and tax treatment?
Before incorporated of business all expenses like consultation fees,printing of MOA, ROC stamp duty etc. under head preliminary exp.and you can utilised in 1/5 th year.
Before commencement of production all expenses goes to indirect exp. in P/L account.
Hi,
How old can be the preliminary expenses of a newly registered pvt ltd company?
Can expenses incurred 3 yrs before registration of company be amortized?
T R SOOD & CO
New Delhi
CA Inter
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CAclubindia
