02 February 2008
i am a artice in a ca firm. we recieved a new audit of a pvt.ltd. co during the f/y2007-08. i did the audit. i found that in f/y 2006-07, the co. made a advance payament of rs 500000/- for a machinery and debited under the machine a/c. in the current f/y they realise that mistake they rectified their mistake by crediting the machine a/c by rs 500000.but before that they have claimed the dep. on that amount. and their income tax return has been submited in income tax. now what should i do?
04 February 2008
file a revised return and show the advance on machinery as loans and advances. and depriciation should not be allowed as the machinery is not yet put to use.
04 February 2008
You need to file the revised return for the same with the income tax return,with the necessary corrections i.e.
1.The allowability of Depreciation would be reduced by the amount of depn charged with respect to Rs.5,00,000/-and to that extent tax & interest is required to be paid.
2.The Accounts is required to be amended in the Current Financial Year i.e2007-2008 w.r.t the following: a.Reverse the entry for booking the machinary & also Depreciation. b.Show the advance payment under loans & advance . c.Book the Machinary in the current Year afresh. d.Adjust the advance with the supplier Account.
06 February 2008
you have to revise for retunr of last year but period of one year from date of submission is over you cannot submitte revised return so in that case at time of assessment the A.O will make addition in the said wrong claim depreciation
CAclubindia
