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preliminary exp...

sajiri shah (CA Final) (112 Points)

03 November 2007

to what extent can preliminary exp can b written off??

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4 Replies

CA Mohit Mohan (c.a. profession) (557 Points)
Replied 03 November 2007

theres nothing mentioned in AS about this. we shud follow income tax Sec. 35D

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C.rajesh (Articles) (1392 Points)
Replied 31 March 2008

the priliminary expenses should be written off over five equal instalments. sec. 35D of income tax act deals with this. plz refer for further clarifications.

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 03 April 2008

Yes I am agree with Rajesh reply

Gauravgupta (63 Points)
Replied 04 April 2008

with introduction of AS 26 preliminary expenses have to be written of in the year in which they r incurred..... while under Income tax it is allowed in 5 years starting from the year in which the business is commenced....... the difference in the two treatment would give rise to deferred tax adjustments under As 22.