How to book Expenses relating to get trade mark registration for a pvt ltd company. we paid 55000/- to a consultant it includes fee for 5 applications @ 7500 total 37500/- and professional fees to consultant 17500 total is 55000/-.
then how to book these expenses in company books of accounts.
19 July 2014
Dear Narendra,
Trademark is an intangible asset and the expenses incurred t/w registration should be capitalised and professional fee for consultants should be treated as revenue expenditure. So the entry shall be as follows:
Trademark (Asset) a/c Dr 37,500
Professional fee a/c Dr 17,500
To Consultants a/c 55,000
Note: If tds is applicable on professional fee add a JV on it for 17,500.
Regards,
Vijay Kumar
CAclubindia
