Cost of Branding

[Pullikalu venkateswara reddy]

Cost of the Branding in the First year of Business, Can it be treated as Intangible Asset ?

AI Summary

Branding Costs in First Year Not Intangible Assets for Tax; Classified as Revenue Expenditures Instead A query was raised regarding whether the cost of branding in the first year of business can be treated as an intangible asset for income tax purposes. The response clarified that expenditures on branding or business promotion in the first year do not qualify as intangible assets. Instead, such costs are considered revenue expenditures, as they do not provide benefits over multiple years but are instead related to the immediate business operations.