Hi Frndz,
The company has incurred pre operative expenses, can any one pls let me know how to treat them in accounts and as per Income Tax rules??
How about treatment of depreciation on furniture and fixtures??
Tushar Mahendru (Learner) (125 Points)
18 December 2009Hi Frndz,
The company has incurred pre operative expenses, can any one pls let me know how to treat them in accounts and as per Income Tax rules??
How about treatment of depreciation on furniture and fixtures??
machender
(student)
(190 Points)
Replied 06 January 2010
1) in accounts all pre operative expenses has to be capitalised.
2) in income tax some pre operative incomes are taxble and some are not. ans as far as expenses are concerned they has to be capitalised and after commencement of operations the company can claime section 35 D of IT Act,
3) Depreciation can be cliamed after commencement of operations.
Sourav Modi
(Learner!)
(306 Points)
Replied 15 January 2010
Its very precisely explained in the following thread:
Ravi Singh
(Article Assistant)
(100 Points)
Replied 15 January 2010
machender is absolutely rite......
Ankush
(Student)
(28 Points)
Replied 26 June 2010
Please reply if any body knows about Treatment of preoperative expenses done by real estate builders and developers ......
How they can show there expenses in the books before recognition of income........
if they are not earning profit ,they can show there expenses as loss in the ITR
or just capitalize them as preoperative expense and write off at the time of revenue recognition as per AS 9.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
