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Expenditure incurred by reliance jio
Dear Sirs,
As all we know that Reliance Jio has launched its mamonth network project on mid of Aug'16. Tremendous huge expense incurred by the Reliance company. I have few queries regarding applicability and implication in books of account of the company.
i) whether company can claim expenditure incurred till (tentative date of going live / commercial 31.03.2017) date as a preliminary expenditure in books?�
ii) Such loss under mobile network segment can set be off against its other segments?
Thnx.
Replies (1)
The company can claim expenditure of capital nature incurred to obtain licence to operate telecommunication services u/s 35ABB of the Income Tax Act. Such expenditure is allowed as a deduction over the period for which the license remains effective. There is a copndition that payment should have actually been made.
If the expenditure is incurred before the commencement of business, then deduction would be allowed from the year of commencement of the business.
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