05 September 2009
what is the accounting and income tax treatment of preliminary expenses (takes place before incorporation of company) but those are not mentioned in section 35D. eg- fees paid to create internet domain address
05 September 2009
As per AS 26 Prelimenary expenses are to written off in the first year of commercial operation.
Fee paid to create internet domain address is a pre operative expense but not prelimenary expense.
So it is to be capitalised.
Prelimenary expenses means expenses incurred for incorporation of a company.So, fee paid to create internet domain address is not a preliminary expense.
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