Treatment of expenditure incurred for formationof 100% subs

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... We haveestablised new 100% subsidiary company inUAE.for thispurposewe haveincurredexpensesin India and use Pl guide for accountingtreatment - Reply By Rama Krishana - The Reply = It is onus on the assessee to prove that the expenditure incurred is for the purpose of its business. It is case of facts and circumstances. You may encounter two type of situations, 1 whether the expenditure are capital .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... or revenue in nature 2. whether incurred for business purpose. If you any input or details, please share on this platform to further elaborate and discuss - Reply By NITIN DESAI - The Reply = Sir, we acknowledge with thanks for receipt of your guidance, however as explain I would like to mention as under. For establishing new 100% subsidiary in UAE, we have incurred expenses in India viz. L .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... egalisation charges of various documents in rupee, legalisation charges in UAE, Licence fee, professional fees, visa fee in AED and also required share capital to be transferred in AED. Request to guide the treatment of all such expenses as to whether it should be treated as revenue expenses in our books of accounts or what should be treatment of all such expenses. if any case law or judgment are .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... available in this regard please provide. - Reply By NITIN DESAI - The Reply = SIR, Further to our discussion, we have shared the information with a request to provide clarity for this issue. - Reply By Bhumish Padshah - The Reply = As per Accounting Standard 26 INTANGIBLE ASSETS preliminary expenses incurred in establishment of legal entity such as legal and secretarial expenses has to be .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... treated as revenue expense. - Treatment of expenditure incurred for formationof 100% subs - Query Started By: - NITIN DESAI Dated:- 22-6-2015 Accounting - Auditing - Got 4 Replies - Companies Law - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X