Provision for doubtful/bad debt
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 June 2012
05.06.2012
Dear Sir,
Our company is an exporter and local seller both.
One Indian debtor of our company do not paying payment. The outstanding amount is about 50 lacs. Can we made provision for doubtful or bad debt and charged it to P/L a/c? with how much percentage?
Pl. advice.
Dear Sir,
Our company is an exporter and local seller both.
One Indian debtor of our company do not paying payment. The outstanding amount is about 50 lacs. Can we made provision for doubtful or bad debt and charged it to P/L a/c? with how much percentage?
Pl. advice.
06 June 2012
You can make provision for doubtful debt. However the same is NOT allowed as deduction for Income Tax.
Under the Income Tax Act, ACTUAL bad debt is allowed as deduction.
Under the Income Tax Act, ACTUAL bad debt is allowed as deduction.
06 June 2012
Yes you can make provision .The income tax will only allow it when you write off the debtor
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
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- Tax on Deemed Capital Gain
- PPF interest-As Exempt Income disclosure
- Pass word to open justification report for Q1 for FY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
