i want to know about the accounting of SEZ unit established in SEZ noida. is their any changes in accounting from the head office?I also want to know about preoperative expenses and prelimery Expenses.can we include pre operative expenses incurred befor starting the production in SEZ unit whereas i have already a units in different location which are runing since two years.so pleas tell me can we include preoperative expenses in accounting befor starting the production and what type of expenses are to be included?As per rule we are liable to maintained seprate books of accounts of individual unit of SEZ for availing the exemption.
27 May 2008
pre-operative exp. : are revenue exp. incurred between formation of company and startup of commercial production. all exp which go to P&L are to be included.
treatment : capitalise (add to fix assets) in ratio of asset value on the date of commercial production
prelim. exp. : exp. incurred before formation of company, usually relate to formation of company like ROC fees, printing of memorandum etc.
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