Deferred Expenditure

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Baljinder Singh (Querist)
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11 October 2008 We have incurred expenditure on account of advertisement of Rs.95 Lac (Aprrox.) on NDTV group.

We would like to treat this expenses as deferred expnditure. Can, we treat as deferred expedniture ? If yes how many year can we written off ?

Is It ok to show as deferred expnediture as per I.Tax Act & Company act?

Pls advise me.

Baljinder Singh

Jitender

Jitender (Expert)
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11 October 2008 as per as-26 this exp can not be deferred now.
therefore no question arises of deferred tax.

CA V. Mohanakrishnan

CA V. Mohanakrishnan (Expert)
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11 October 2008 assuming this 95 lacs for advertisement in a particular period which is the current year, the same cannot be deferred.

if the amount is for a period beyond the current financial year, then proportionate amount be deferred to the appropriate period

however this transaction does not bring in deferred tax scenario in both the cases as treatment for books and IT would be the same

Baljinder Singh

Baljinder Singh (Querist)
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13 October 2008 Sir,

I have gone through the annual report of ltd. cos. they are cliaming of huge amount of advertisement exp. under miscellaneous exp. written off in the balance sheet.

I am totally confuse.

pls help me.

Baljinder Singh

Baljinder Singh

Baljinder Singh (Querist)
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