Treatment of preliminary exp

preliminary exp can be divided into two one is company and other than company 

in company 

Step-1 compute 5% on cost of project

step-2 compute 5% on capital employed 

step-3 highest of step-1 & step-2

step-4 actual expenses 

step-5 lowest of step 3 and 4

step-6 1/5 of step 5

Incase of other company 

1.compute 5% on cost of project 

2. actual expenditure 

3.lowest of step 1 and step .2 

4.1/5 of step 3 

preliminary exp means any  expenditure in connection with 

1. preparation of feasablity report

2.preparation of project report

3.conducting market survey any other survey neccessary for the business of the assesse 

4.enginerring services realting to the business of the assesse 

preliminary exp means any  expenditure in connection with 

1. preparation of feasablity report

2.preparation of project report

3.conducting market survey any other survey neccessary for the business of the assesse 

4.enginerring services realting to the business of the assesse 

HI to all plz give me idea to clear my icwai exam. now i m purusing in inter level