preliminary Vs pre-incorporation expenses

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Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2011 what is the difference between preliminary expenses & pre-incorporation expenses as per company law.

plz help urgent.

thanks & regards

CS Bijoy

CS Bijoy (Expert)
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24 May 2011 All pre-incorporation exp can be treated as preliminary exp but all pre - incorporation exp can not be treated as preliminary exp.Beside this all preliminary exp incur after establishment but before commencement of business can be allowed as deduction under the income tax act which is not applicable in pre incorporation exp.