A private Limited Company is in the business of rendering services such as annual maintenance
of cars. The Company business is totally dependant on the advertisement.
The company incurs lot of expenses for advertisement. The company incorporation date is Dec 2009.
It has incurred advertisment expenditure to the extent of Rs. 1 lac.
What should be the treatment for advertisement expenditure as per the Compnaies Act as well as Income Tax
Whether the advertisment expenditure incurred should be deferred and amortised over a period of five years.
AGain what is the allowability of the advertisement expenditure as per the Income Tax Act.
I request anyone who has knowledge about it,kindly help me its urgent.
CAclubindia
