14 May 2008
When some expenditure is incurred at the time of name change,then how to treat that expenditure in accounts.i.e shall we show that as preliminary exp.not written off.
14 May 2008
YES NAME CHANGE EXP. LIKE ROC FEES,PRINTING AND STATIONARY ( PRINTING REVISED MEMORANDUM AND ARTICLES,CHANGE OF NAME BOARDS,LETTER HEADS,INV/BILL BOOKS,VISITING CARDS,ACCOUNTS BOOKS ETC..) ARE REVENUE EXP. UNDER RATES AND TAXES OR STATURORY COMPLIANCE EXP./PRINTING AND STATIONARY.
WHILE PREL. EXP ARE SPECIFIED UNDER SEC 35 D OF IT ACT UNDER VARIOUS DETALED HEADS,WHICH CAN BE WRITTEN OFF IN 5 YEARS.THEY INCLUDE EXP. UNDER PROJECT REPORT PREPARATION,PREPARATION OF FESASIBITY REPORT ,ENGG. SERVICES ,MARKET SURVEY ET...EITHER BEFORE COMMENCEMENT OF BUSINESS OR IN CONNECTION WITH EXTENTION OF AN EXISTING IND. UNDERTAKING . IN CASE OF A COMPANY SUCH EXP. INCLUDE PRINTING M/A,DRAFTING CHARGES,FEES FOR REGISTERING THE CO.,PUBLIC ISSUE,UNDERWRITING PRINT AND ADVERTISE PROSPECTUS ETC... WHERE AS EXP. RELATING TO INCREASE OF AUTHORIDSED SHARE CAPITAL WILL QUALIFY AS CAPITAL EXPENDITURE AS PER CASE LAW DECIDED. WE COMPLIMENT YOU ON BEHALF OF CA CLUB FORUM FOR YOUR LOOKS .WE HAVE MISTAKEN YOUR PHOTO AS THAT OF GENELIA,CINE ACTRESS. R.V.RAO