Advertisement expenditure
This query is : Resolved
16 June 2015
One company expended huge money for making of a Advertisement Film for its newly introduced product , which can be broadcasted on TV for 2 years, However the benefit from the Ad can not be presumed.
Should this expenditure be Written off completely in the year of Making of the film, or should it be deferred for two years.
Please provide the reference to Accounting Standard or Rules or Act or Guidance Note for support.
Thank you
Should this expenditure be Written off completely in the year of Making of the film, or should it be deferred for two years.
Please provide the reference to Accounting Standard or Rules or Act or Guidance Note for support.
Thank you
17 June 2015
Dear
The concept of deferment is not more relevant.
Now no expenditure can be deferred. With the introduction AS-26, the deferment is not now permissible.
Hence,whole expenditure should be expensed i.e transferred to P&L a/c.
Also TDS should be deducted under section 194C.
The concept of deferment is not more relevant.
Now no expenditure can be deferred. With the introduction AS-26, the deferment is not now permissible.
Hence,whole expenditure should be expensed i.e transferred to P&L a/c.
Also TDS should be deducted under section 194C.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CASH GIFT FROM BLOOD RELATIVE
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- Rent claimed on building given on permissive possession basis
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
