What is themaximum time period for writing off Miscellaneous Expenditure as per companies Act & as per Income Tax Act? How would the unamortised be shown under the Revised Schedule-VI?
Regards,
Souvik Kumar Ghosh (CA Final) (1368 Points)
13 June 2012What is themaximum time period for writing off Miscellaneous Expenditure as per companies Act & as per Income Tax Act? How would the unamortised be shown under the Revised Schedule-VI?
Regards,
jean
(article assistant)
(113 Points)
Replied 13 June 2012
amortization can be done over the period of 8 years
but the new scheule VI has not particularly specified what will be the treatment of miscellaneus expenditure.
as per my latest dicussion with my principle,
we can adjust miscellaneous expenditure with reserve and surplus.
but if considered AS 26 (para 56) whole amount can be debited in profit and loss a/c.
saikiran
(CA)
(96 Points)
Replied 13 June 2012
As per the guidance note unamortise amount (like amortised amount on discount on debentures) can be shown under non current assets. There is no specific mention of miscellaneous expenditure under companies or income tax act. In both the acts preliminary expenditure is mentioned. As rightly said by Jean, as per AS 26 Misc. expenditure can be debited to p&l in the same year
nitin suvarna
(C.A FINAL)
(828 Points)
Replied 14 June 2012
We can consider this as an option , right or else usually one amortises the amount for a period of 5 years .correct me if i am wrong.
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