Payable outstanding for years disallowance
This query is : Resolved
13 November 2024
Sir,
remuneration payable is outstanding for years. Can we disallow the same in income tax as the losses are high while making the computation. Also there is no sufficient funds for the remuneration to be paid. Pls guide
remuneration payable is outstanding for years. Can we disallow the same in income tax as the losses are high while making the computation. Also there is no sufficient funds for the remuneration to be paid. Pls guide
14 November 2024
Tax authorities may scrutinize outstanding remuneration, especially if it is significant or if there are delays in payment. They may question the genuineness of the expense and may disallow when written off.
14 November 2024
Can we disallow this year in computation under which section?
14 November 2024
Ind AS 109 – Financial Instruments: If accounts payable are recognized under financial instruments and the liability is derecognized, any adjustment should be made according to the rules for derecognition of financial liabilities in Ind AS 109. This would be applicable when the settlement or write-off of accounts payable leads to an extinguishment of the liability.
When writing off accounts payable, the expense or loss on the settlement should be recognized in the profit and loss account in the period in which the obligation is extinguished. For example, if a payable is written off due to a legal dispute resolution or because the liability is no longer valid, the company should recognize the reduction in accounts payable and a corresponding gain or reduction in expense.
When writing off accounts payable, the expense or loss on the settlement should be recognized in the profit and loss account in the period in which the obligation is extinguished. For example, if a payable is written off due to a legal dispute resolution or because the liability is no longer valid, the company should recognize the reduction in accounts payable and a corresponding gain or reduction in expense.
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