Booking of bills aftr 1 year from receipt

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This query is : Resolved

shailu (Querist)

21 November 2014 I am working in a Infra Co.our subcontractor worked in May,2013 But raised bill on 31st October 2014 When i booked the same our auditor rejected it and said it is disalloawable as per Income Tax Act. in this regard i want legal guideline

Amol S Joglekar

Amol S Joglekar (Expert)

21 November 2014 If the work has been completed in May 2013, you should have provided the same in the year 2013-14. Let the bill is presented to you in 2014-15, but you were knowing that the work has been done in May 2013. Under mercantile system of accounting, you should have PROVIDED for the same in the accounts of 2013-14.

Rupesh Jain

Rupesh Jain (Expert)

22 November 2014 you can claim the exp in the same year in which you received the bill . you can claim the exp. of may 2013 during the year 2013-14. not after that

Amol S Joglekar

Amol S Joglekar (Expert)

22 November 2014 Try to fnd out why the same has not been provided for in the concerned year

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