Liability Booking

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Bapun Dasgupta (Querist)
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10 May 2022 The advocate of our organisation rendered professional services for us in February & March, 2022. There was no predetermined contract for rates of services. He has raised an invoice for his above mentioned services on 10 April, 2022 & payment has been made thereafter.

Our organisation decided to book liabilities for expenses in it's financials for the year ended 31 March considering the accept the previous year's bills of creditors received upto 30 April, 2022.

Will the above invoice of the advocate dated 10 April, 2022 be booked as a liability for expense in the closing financials for 31 March, 2022 or will it be charged as an expense directly in the current FY 2022-23 ?

With best regards.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 May 2022 Professional services for you rendered in February & March, 2022,
Booke it as a liability for expense in the closing financials for 31 March, 2022.

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Bapun Dasgupta

Bapun Dasgupta (Querist)
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10 May 2022 OK Sir. Thank you and regards.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 May 2022 You are welcome..........

PARAS CHHAJED

PARAS CHHAJED (Expert)
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11 May 2022 If total payment already made and that booked for February and March 22 exceeded Rs.30,000, deduct income tax at source (TDS) u/s 194J and deposit the same and include such deduction in your TDS return for 4th quarter.

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Bapun Dasgupta

Bapun Dasgupta (Querist)
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11 May 2022 Right Sir. Thank you.

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