Related to priliminary expenses current treatment in books
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 October 2013
What is treatment of priliminary Expenses in companies & others book.Please confirm me.your's Balram
16 October 2013
As per companies act preliminary expenses to be written off in the same year but as per income tax act it is to be written of in 5 years.
16 October 2013
Preliminary exp is to be amortized over a period of 5 years as per AS 26.
16 October 2013
Mr Tushar what you are saying is as per income tax but as per companies act it is to be wfritten off in the same year. Please go through the M.P. Vijay Kumar's Financial Accounting Book.
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16 October 2013
Pls refer to AS 26 it clearly mentions that it must be written off in 5 years.
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16 October 2013
As per para 56 of AS 26 preliminary expenses do not qualify to be an intangible asset. Hence ,such expenses should be written off in the year of occurrence for accounting purpose.
For taxtion purpose section 35D can be applied.
For taxtion purpose section 35D can be applied.
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18 October 2013
Preliminary expences can be written offin our books in the year of occurance,,
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however for income tax purpose 35D can be applied
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however for income tax purpose 35D can be applied
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