23 June 2010
There is a company which has not commenced its business yet. The company is having some establishment expenses. I want to know whether the company has to prepare a Profit & loss account or it can show the expenses as pre-operative exp. since the business has not been started? Whether the company can avoid the preparation of profit & loss account? Will the expenses be allowed under the Income Tax Act if shown as pre-operative?
Plz reply if anybody knows the answer... Its urgent...
CAclubindia
