09 March 2011
i paying rent on new premises since may 2010 and i will start my business in the same premises in the month of april 2011. can i have to take the rent into prior period expenses or keep in sunderies as i have not stated business and generation of income.i have to capitalised the paid rent in the financial year 2010-11.
13 March 2011
How could past rent be related to non-started business ? You may prepare an account of expenses incurred for preparing to start business since May 2010 till 31.03.2011 (FY 2010-11)and carry it forward for consideration against Income during FY 2011-12; You should be able to establish activities relating to new business since May 2010 !
CAclubindia
