CREDIT CARD ANNUAL FEE & INTEREST

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Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2011 dEAR sIR,
WHERE WOULD THE CREDIT CARD INTEREST AND ANNUAL FEE & OTHER CHARGES LEVIED IN THE CARD BE PLACED IN THE p&L STATEMENT AND ALSO WHETHER THESE indirect expenses debited from P&L
Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 April 2011 The use of Credit Card is of immense importance. If it is for personal use and having no connection with the business carried on by the assessee, these expenses should not be debited to P&L A/c.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 April 2011 Dear Sir,
Thank you for ur reply. just a few clarifiactions:-
1. the card in question is a business credit card. and secondly on settlement of the card the bank inflates the outstanding amount by leving interest and penal interest and on settlement the said amound is given as rebate. So whether the penal charges levied on the card be deducted from the final amount to be carried over to P&l a/c.

alternately in which account will those expenses be put. kindly reply as the amount will directly impact the tax to be paid.
Thanks in advance

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