Aswini Kumar Mohanty (CA Job) (42 Points)
30 November 2012Hi every body.
My company is going to establish a representative office in USA. As per FEMA circular 7B one company can expend upto 25% of its networth for the initial expenses. So if I expend that much of amount whether that will capitalise in HO book in India or it will be allowed as an revenue expenditure.
Nithin Chettoor
(Assistant Manager)
(388 Points)
Replied 30 November 2012
Those are deferred revenue expenditure which can be subsequently written off over a period of time. Just like preliminary expenses.
vikas
(student )
(139 Points)
Replied 02 July 2013
it is my opinion that initial expenses expenses of capitalised in the books of H O (in india) and written off over the time as a preliminary expenses
CAclubindia
