Treatment of Expenses?

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(Querist)
23 June 2010 There is a company which has not commenced its business yet. The company is having some establishment expenses. I want to know whether the company has to prepare a Profit & loss account or it can show the expenses as pre-operative exp. since the business has not been started? Whether the company can avoid the preparation of profit & loss account? Will the expenses be allowed under the Income Tax Act if shown as pre-operative?

Plz reply if anybody knows the answer...
Its urgent...
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Badri Kharat

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Badri Kharat (Expert)
23 June 2010 Yes, you have to show it as pre operative expenses, you can avoide prepration of profit and loss account
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Princy

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Princy (Querist)
25 June 2010 But the company is a Pvt. Ltd. Co.
Plz provide the basis for avoidance of preparation of Profit & Loss Account.
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Princy

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Princy (Querist)
25 June 2010 Plz do reply..
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Dhirajlal Rambhia online

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Dhirajlal Rambhia online (Expert)
01 August 2023

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