Treatment of pre-incorporation expenses and revenue

Sir,

What is the accounting treatment for pre-incorporation revenue earned and pre- incorporation expenses incurred?

Replies (6)

Plz find the attachment herewith....

The attached file doesnot contain any relevance for pre-incorporation renenue  earned and  the expense incurred is also of capital nature not revenue? What is the treatment for the same?

 

Pre-incorporation revenue is transferred to Capital Reserve.

(e.g., profit prior to incorporation is transferred to the same)

preincorporation exp. will b consider as priliminary exp and will treat as defined under u/s 35 ad of the it act,1956...............

Hi
I have a question
I have hired a Business Development Consultant before I actually started my ABC LLP.
I have paid him 50000/- without deducting TDS in July 2015. And 45,000/- in September 2015.
Then formed a LLP for the said business in September end. I got my PAN card in December. I have just applied for TAN yesterday on 18th December 2015.
Now, the consultant is asking for 50,000/- more.
Should I deduct TDS on (50,000+45,000+50,000) at 10% and pay him?
As per what I understand, without having TAN number, how can I deduct TDS...
And even if I deduct it, will I receive my TAN number before 6th of January to pay TDSmon 7th January?
I have been told that these (50,000+45,000) that I gave him from my personal account towards business development will be claimable as preincorporation expense.
Is that true, please comment on that also....
What should I do?

No tds is required on pre-incorporation expenses paid out from personal account.

 

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