I want to know that if a pvt ltd wants to incorporate its wholly owned subsidiary, then what will be treatment of preliminary Expenses? can business loss of WOS can be ksett from income of Holding Company. Thanking you
28 April 2016
taxation is based on the concept of legal entity. so holding Co. can not take benefit of loss of wis.
Further, preliminary expenses will be charged to p&l in same year while for tax purpose it is allowed in 5 years.
thanks
CAclubindia
