Cost of Branding

[Pullikalu venkateswara reddy]

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

[Rama Krishana]

An asset which endeavor benefits during the next years would be treated at capital asset. If you have incurred some expenditure on branding or promotion of business during the first year, same cannot constitute Intangible asset. In my view it is revenue expenditure.

AI Summary

Branding cost classification: initial-year branding treated as revenue expenditure, not an intangible capital asset for tax purposes
Branding or promotional outlays made in the first year do not qualify as an intangible asset and should be treated as revenue expenditure rather than capitalized as a capital asset.