Prior Period Expenditure..
This query is : Resolved
26 March 2009
Respected Sir,
Our client place is availing the service of man power supply from an agency since 2004.the party has however not charged any service tax for his service,though there was an obligation for the same and now he is claiming the service tax amount which he failed to recover and we agreed to pay the same..
now the question is should we book the expenditure as prior period or not?
Our client place is availing the service of man power supply from an agency since 2004.the party has however not charged any service tax for his service,though there was an obligation for the same and now he is claiming the service tax amount which he failed to recover and we agreed to pay the same..
now the question is should we book the expenditure as prior period or not?
26 March 2009
For the purpose of income tax and books of account it will be treated as prior period expenditure and with reference claiming of service tax it is like current payment.
26 March 2009
It is not a prior period expenditure as per AS-5.
It is the current year expenditure.
It is the current year expenditure.
28 March 2009
Thank You,for your valued reply..
Can you further clarify with regards to Income tax Implication on the above..
Can you further clarify with regards to Income tax Implication on the above..
29 March 2009
It will be allowed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Fixe term employment
- Is any professional CA is here please reply
- Section 50-fixed asset-->building ceases to exist
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Experts need help
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
