Hi,
Is it necessary the Expenses Bill before incorporation like Fixed Assets, rent agreement, administration expenditure bill named on company. if the all expenses in the name of director can he claim ??? pls. reply
4 Replies
Dattatray
(Account Executive)
(51 Points)
Replied 29 April 2010
Yes.. all the preincorporation expenses.... in accounting language v call it as Preliminary Expenses... director can claim...and v can write off that expenses in 3 years or 5 years as per company policy
Aneesh
(Pursuing CA)
(101 Points)
Replied 29 April 2010
When the company is not yet formed there is no question of the existance of any directors, since only the promoters have the authority and rights to purchase and expend for the req. of the company. so the exp. will naturally be in the name of the promoters.
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