Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
 
Discussions Forum
Home Forum Income Tax
← Previous Next →

Pre-operative Expenes - Income Tax

Issue Id: - 3941
Dated: 23-3-2012
By:- CA SUNIL BHANSALI
Pre-operative Expenes

  • Contents

I have create a company and after incorporation, i incur some pre operative expense and other income like Interest on FDR  so i prepare P&L Account to claim these pre-op expense. Now the business of the company has not been started. in next years company has not any income so we are showing expenses as pre-operative expenses. is it ok to show pre-op exp. after preparing P&L account. please tell me proper treatment for the same.

Posts / Replies

Showing Replies 1 to 1 of 1 Records

1 Dated: 25-3-2012
By:- GOPALJI AGRAWAL

Sunil Ji

After application of AS-26 on Intangible Assets, the concept of pre-operative, deferred revenue etc do not exist. The preliminary and pre-operative expenses have to be debited in the Profit & Loss account itself. .For detail, please read para 56 of the said standard. AS 26 is applicable for all entities invariably w.e.f. 01/04/2004.


1

Old Query - New Comments are closed.

← Previous Next →


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map || ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version