Can someone pls tell me what is the tax & accounting treatment of new ISO certificate bought?
KRUNAL SANGHVI (Article) (38 Points)
06 September 2011Can someone pls tell me what is the tax & accounting treatment of new ISO certificate bought?
valji
(Accounts manager-MBA)
(2150 Points)
Replied 06 September 2011
it booked as a professional charges for the certificate from whom you received ,tds also deducted under sec 194 j for the same
KRUNAL SANGHVI
(Article)
(38 Points)
Replied 06 September 2011
I agree that If there is any professional charges incurred in obtaining the certificate thn its treated as professional charges but how can cost of iso certificate be treated as professional charges?
surender
(Manager Accounts)
(149 Points)
Replied 07 September 2011
It can be booked in 'Legal & Professional Charges' A/c under
Expenses. This will be charged off to P&L A/c of the
relevant period.
However, if the expense is very huge & will impact the P&L
A/c of the year of expense, it can be deferred for more than
one year also.under the head 'Deferred Revenue Expenditure'.
Balance not charged off at the end of the accounting period
will be shown in the Balance Sheet under 'Miscellaneous
Expenditure' Not written off or adjusted.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India