swati (Article) (72 Points)
14 April 2013Hiii everyone..
Preliminary Expenses are accounted as per accoounting standard 26 in books and as per sec 35D in tax and the calculation of deferred tax will be done.
My question is what if the preliminary expenses are more than 5% of capital employed (say preliminary expenses are Rs 15000 and capital employed is Rs 100000). In that case what amount we need to show in books and in taxation as per the example.
Naga Praveen
(Chartered Accountant)
(304 Points)
Replied 11 August 2013
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Preliminary expenses are booked in the books when incurred Originally posted by : swati |
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Hiii everyone.. Preliminary Expenses are accounted as per accoounting standard 26 in books and as per sec 35D in tax and the calculation of deferred tax will be done. My question is what if the preliminary expenses are more than 5% of capital employed (say preliminary expenses are Rs 15000 and capital employed is Rs 100000). In that case what amount we need to show in books and in taxation as per the example. |
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