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
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- Form 121-contradictory opinions
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
