Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

prior period item

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2010 A co. is enagaged in a job work in cloth.company has availed consultancy service in vaastu, architectural & interior designer for designing the installation of plant & machineries and other office equipments as well as design of office in the month of march-10.service provider has raised the bill on 01/04/2010. company has paid a sum of Rs.300000/- Now, my question is whether such exp. is considered as prior period exp. u/s. 44AB of I.T.Act-1961 and under AS-5.

Snehal Parikh

Snehal Parikh (Expert)
Follow

13 June 2010 As the Company gets service in March-10, the company should make provision for expenses in books of account in financial year 2009-10,eventhough the bill is received as on 1st April,2010. Hence the question prior period does not arise.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now