Treatment of preliminary and pre-operative expense
This query is : Resolved
08 September 2014
Please Explain the treatment of Preliminary and Pre-Operative Expenses as Per
Companies act
Income tax Act and
AS-29
Is DTA/DTL is created?
And if in 1st only 1/5 is written off in books as per Income Tax and forgot to claim 100% as per Companies Act and no DTA/DTL created than what treatment has to be done in subsquent period
Companies act
Income tax Act and
AS-29
Is DTA/DTL is created?
And if in 1st only 1/5 is written off in books as per Income Tax and forgot to claim 100% as per Companies Act and no DTA/DTL created than what treatment has to be done in subsquent period
08 September 2014
Practically companies write off the 1/5th of the expenditure in the books also.So no DTA/DTL
08 September 2014
But as per companiest Act 100% write off in first year. In Subsequent years preliminary Expenses disallowed by Income Tax Authorities
08 September 2014
not mandatory to write off 100% you may follow as per income tax rules.
08 September 2014
But Practicaly I face the problem that in Intimation U/d Section 143(1) disallow the same and Annual reports are submitted as per Companies Act and not as per Income tax Act and only differents between two's are done in Computation of Income Tax return
08 September 2014
How could they disallow if you also have write off 1/5th
08 September 2014
If we write off only 1/5 as per Income Tax than Books of Company are Malafide as it is not as per Companies Act
08 September 2014
please explain what you have exactly done in the books and what is written in the notice?
08 September 2014
What I want to know is that, as per Companies Act what is the treatment done for Preliminary Expenses because the Companies Act says we have to write off 100% in 1st year and Income Tax Act 1/5. Is the treatment of it is as same as Depreciation(DTA/DTL)
08 September 2014
you just write off full expense in 1st year income tax department will allow only 1/5th every year. So calculate DTA accordingly.
08 September 2014
Thanks for your Suggestion Mam. I have one more query about this is that what treatment I have to do if I forgot to calculate DTA in first year due to non Claim of 100% expenses in Company's Books
08 September 2014
dont worry calculate in current year.
08 September 2014
Ok. Thank for your Valuable suggesions
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Disallowance of Section 43B(h) to sez units
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Sale of property furniture sale
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Confusion around Form 26QB fields
- RCM INVOICING FROM NOV-2024
- GST Regis.
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Tds on building rent monthly
- As per schedule III of balance sheet how to pass journal entry
- Is correct way to find out capital of individual on 31st March
- Individual capital equal to which assets of balance sheet
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
