Prior Period Items


This query is : Open 

21 September 2009 Dear Experts,

According to AS-5 Prior period items is to be disclosed separately. What is the impact of these items under Income Tax Act and Companies Act? Whether it will be allowed if tds is deducted under I.T. Act, and what is the significance under Companies Act?

Regards,
Shashi

21 September 2009 Prior period items will not be allowed as a deduction under income tax when you debit to your profit and loss account in the subsequent years whereas you have to deduct tds otherwise penal provisions will be attracted. As per companies act you have show it as expenditure in the same head of account and in notes to accounts you have to mentions that rs. being last years expenditure debtied during the year.

21 September 2009 Agree with expert

22 September 2009 Sir,
Can you please quote under which section it will not be disallowed under I.T. Act?

22 September 2009 Sir
Can you please quote under which section it will not be disallowed under I.T. Act?


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