Would like to know that is cash transaction permissimable from company to company .
if the parent co incurres the expn in cash for formation of the other company and incurres expn in cash what will be the accounting treatment will be given
05 October 2011
I think 40A(3) applies to expenditure in revenue nature. We are not debiting the whole company formation expenses to P&L account. We are debitting to P&L in 5 years equally.
I think this case will not attract 40A(3). Plz update me if I Wrong.
CAclubindia
