project cost of private limited

This query is : Resolved

aman miglani (Querist)
Follow

24 June 2013 a company has been formed i june 2012 ..
till 31st march 2013 compay has been incurred the project cost 1000000 and admin. cost is 2500000 ,so what is the treatment in financial statement??????

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

24 June 2013 What is the project nature & purpose?

aman miglani

aman miglani (Querist)
Follow

24 June 2013 nature is the site development
and the purpose i.s promotional

Upgrade to CAclubindia Pro. Subscribe Now!

aman miglani

aman miglani (Querist)
Follow

24 June 2013 nature is the site development
and the purpose i.s promotional
and there is no revenue till date

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

24 June 2013 In case the project is nature of create any asset, you can keep the balance under Capital work in progress

Incase project expenses unable to construct assets and nature of revenue expenses then you debit to p&l a/c

aman miglani

aman miglani (Querist)
Follow

25 June 2013 then we carry forward losses of current year to next year...
also section14A is attracted..in case
so then what is the treatment

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

25 June 2013 Reply which I have posted for accounting treatment, Income tax provision will be apply as per the act.