CAN PRE OPERATIVE EXPENSES BE CAPITALISED? IF YES, HOW CAN
IT BE DONE?
Answers were Sorted based on User's Feedback
pre operative expenses of capital nature are to be
capatalised with cost of fixed assets in relaions to which
they have incurred. whereas pre operative expenses fo
revenue are to be charged aganist profits in which year
buisness has commenced.
| Is This Answer Correct ? | 107 Yes | 31 No |
Answer / bhanu prasad
How can we charge pre operative expenses against profits in
the year of commercial started. In IT any pre operative
expenditure should be capitalised or writeoff over the
period else it will be disallowed.
| Is This Answer Correct ? | 56 Yes | 18 No |
Answer / sandeep sandhu
preoperative expenses whether of capital nature or revenue
nature, should be added in fixed assets in the ratio of
fixed assets and claim the depreciation according to it
over the years.
Preoperative expenses is different from the preliminary
expenses. Preliminary expenses treatment should be done
according Section 35D of income tax act 1961
| Is This Answer Correct ? | 45 Yes | 12 No |
Answer / ashok saini
Peroperative expenses wherther of capital nature or revenue
nature, shuld be added in fixed assets in the ratio of
fixed assts and claim the deperciation according to it over
the year.
| Is This Answer Correct ? | 25 Yes | 10 No |
Answer / abhishek
I GUESS PEOPLE ARE REALLY CONFUSED WHETHER PRE OPERATIVE EXPENSES SHOULD BE CHARGED TO P/L OR ITS SHOULD BE CAPITALISED.ACCORDING TO ME,PRE OPERATIVE EXPENSES SHOULD BE CAPITALISED IF IT IS OF CAPITAL NATURE OR ELSE CHARGE TO P/L AGAINST PROFIT OF THAT YEAR...
| Is This Answer Correct ? | 26 Yes | 18 No |
Answer / murugesan
YES MR.ABHUSHEK SAID IS CORRECTLY,
I GUESS PEOPLE ARE REALLY CONFUSED WHETHER PRE OPERATIVE
EXPENSES SHOULD BE CHARGED TO P/L OR ITS SHOULD BE CAPITALISED.
ACCORDING TO ME,PRE OPERATIVE EXPENSES SHOULD BE CAPITALISED
IF IT IS OF CAPITAL NATURE OR ELSE CHARGE TO P/L AGAINST
PROFIT OF THAT same YEAR ,
every one has to understood this before accounting.
| Is This Answer Correct ? | 4 Yes | 9 No |
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