16 October 2013
As per companies act preliminary expenses to be written off in the same year but as per income tax act it is to be written of in 5 years.
16 October 2013
Mr Tushar what you are saying is as per income tax but as per companies act it is to be wfritten off in the same year. Please go through the M.P. Vijay Kumar's Financial Accounting Book.
16 October 2013
As per para 56 of AS 26 preliminary expenses do not qualify to be an intangible asset. Hence ,such expenses should be written off in the year of occurrence for accounting purpose.
CAclubindia
