CA. Mala Rohara (Partner) (145 Points)
01 August 2018A pvt ltd is incorporated in F.Y. 2017-18 and commencement of production is in F.Y. 2018-19.
Co. incurred pre incorporation expenses viz consultation fees, printing of MOA, ROC stamp duty etc. and after incorporation but before commencement of production viz audit fees, bank charges, directors interest nd salary.
What will be accounting and tax treatment?
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 01 August 2018
Prakash Gehani
(Consultant & Teacher(Whatsapp 8718057907))
(1306 Points)
Replied 02 August 2018
chandan singh
(Senior Finance Associates)
(49 Points)
Replied 02 August 2018
Before incorporated of business all expenses like consultation fees,printing of MOA, ROC stamp duty etc. under head preliminary exp.and you can utilised in 1/5 th year.
Before commencement of production all expenses goes to indirect exp. in P/L account.
brijesh kumar
(student)
(61 Points)
Replied 04 August 2018
Tanu
(Manager)
(85 Points)
Replied 18 October 2023
Hi,
How old can be the preliminary expenses of a newly registered pvt ltd company?
Can expenses incurred 3 yrs before registration of company be amortized?
CAclubindia
