Dear Members,
Preliminary exp is to be written off @ 20% as per IT Act.
As per Co. Law it is 100% allowed.
For MAT Book Profit whether Preliminary exp. is to be added back.
& What will be the effect of above in P&L Schedule of ITR
Nirav Shah (CA) (108 Points)
29 September 2013
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 29 September 2013
No it is not required to be added back as the Explanation to Sec 115JB does not provide to deduct the same as such..so the treatment made in books for the prelim exps is final and no adjustment to same can be made....
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
