Preliminary expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2012 A company with a capital of 5 lacs had incurred prelinary expenses of Rs.70,000/- and the total turnover of the first year is about 9 lacs. What is the method that should be adopted for charging the preliminary expenses under the Companies Act, 1956 as well as the Incometax Act, 1961. Whether the entire expenditure can be charged under both enactments

Thanks in advance

Santhosh

CS Divya Sorayan

CS Divya Sorayan (Expert)
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14 July 2012 U have to enter into an agreement with directors for payment of preliminary expenses to be paid by the company after incorporation under the companies act.