Pre Incorporation Salary Paid

KAVITHA BURMA (CA Final) (197 Points)

07 March 2011

Our Company paid salary before incoporation(registration) to employees for 3months

and the same is treated as preliminary expenditure

is the tds has to be deducted on such salary

please reply soon as it is very urgent

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4 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 07 March 2011

TDS will not applicable in this case... because company incorporate later and TDS not applicable in premilary expenses.

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KAVITHA BURMA (CA Final) (197 Points)
Replied 07 March 2011

thank u for ur reply

is there any specific provision or section applies in this regard

(Guest)

there is no specific section or provision for this, u just need to amortise preliminary expenses in certain time period.

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KAVITHA BURMA (CA Final) (197 Points)
Replied 07 March 2011

But i want to know

which period as to be covered in form 16

please reply soon i need to prepare form 16

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