Allowability of advertisement expenditure.
This query is : Resolved
27 February 2013
XYZ Pvt Ltd Co. has incurred Rs 100 on advertisement and business promotion and charged to P&L, payment was made to ABC P Ltd. ABC P Ltd has not taken it as income, but kept it as advance, as work of advertisement has not started. Question: Can our claim of expenditure be disallowed because ABC Has not taken it as income ?
Read more at: https://www.caclubindia.com/experts/experts_profile.asp?member_id=85931
Read more at: https://www.caclubindia.com/experts/experts_profile.asp?member_id=85931
27 February 2013
well the expenditure in your books (XYZ) should be disallowed not because ABC has not taken it as income but for the reason that it is nature of prepaid expenditure which should not be routed through Profit and Loss account. Since you are a company, (and I am sure you have been maintaining your tax books on accrual basis), this payment doesn't constitute an expense in your books in the relevant year.
Message likes :
1 times
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
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- TAN for Partnership
- Free lancer income
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Last year TDS Claim
- Long Term Service award taxability in hands of company
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
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
