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Set off of business loss

Shoumitra Bhowal (Proprietor) (42 Points)

22 November 2018

I wanted to know can the directors / or how can the directors of a company claim losses in incorporating a company which has been Voluntarily struck off under the Cos act 2013

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Nitesh bind (Student CA Final ) (12692 Points)
Replied 22 November 2018

I think there can't be any Losses even when the company has yet to incorporate. Any expenses which has been done before the incorporation of company is covered under Preliminary Expenditure u/s 35D which is allowed 1/5 each year in 5 year starting from year of Incorporation.

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Shoumitra Bhowal (Proprietor) (42 Points)
Replied 23 November 2018

The company has already been incorporated that is why it has to be struck off. Since the Company will be struck off it cannot carry forward the losses. So can the share holders can claim any thing over than their Capital loss for share capital contribution on all the other expenses incurred

Nitesh bind (Student CA Final ) (12692 Points)
Replied 23 November 2018

Well, in that case, the losses of company can't be carry forward or taken over by Shareholder. Because the Losses can be carried forward only by the person who is incurred it with the only exception in case of business restructure e.g. Amalgamation/Demerger etc.

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