preliminary expenses

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preeti (Querist)
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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

Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)
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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.