Preparation of Income & Expenditure A/C instead of P & L A/C
This query is : Resolved
CA Sanjay Baheti
(Querist)
11 June 2010
My cient being an Individual engaged in providing Security Services to renowned customers like IOCL,AIR at different locations in Gujarat.
The same is covered under Tax Audit.
Now query is whether we can prepare Income & expenditure A/C instead of Profit & Loos Account for auditing purposes as he is service provider & charging only Service Tax in Invoices/Bills raised to customers.
In relation to such activities Normal/routine expenses are expended/incurred accordingly.
The same is covered under Tax Audit.
Now query is whether we can prepare Income & expenditure A/C instead of Profit & Loos Account for auditing purposes as he is service provider & charging only Service Tax in Invoices/Bills raised to customers.
In relation to such activities Normal/routine expenses are expended/incurred accordingly.
11 June 2010
yes you can prepare Profit & Loss A/c
DEEPIKA GOEL
(Expert)
11 June 2010
Income and expenditure account is prepared in case of trust or societies and in all other cases, profit and loss account is prepared to arrive at the profit or loss of the company.
If your client is registered as trust or societies with any society act or smthing else, you can prepare the income and expenditure account instead of profit or loss account.
If your client is registered as trust or societies with any society act or smthing else, you can prepare the income and expenditure account instead of profit or loss account.
Snehal Parikh
(Expert)
11 June 2010
Income and Expenditure account is mainly prepared where the organisation is not engaged in commercial, industrial or business activities.
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