provision for expense
This query is : Resolved
06 May 2010
respected experts,
In f.y. 2008-09 Proviion for expense was done in the p & l A/C was rs. 20000/- but in f.y. 2009-10 actual expense incurred Rs. 18000/- so how should I treat remaining RS. 2000/-
How should I acoount it in the books os accounts of f.y. 2009-10.
In f.y. 2008-09 Proviion for expense was done in the p & l A/C was rs. 20000/- but in f.y. 2009-10 actual expense incurred Rs. 18000/- so how should I treat remaining RS. 2000/-
How should I acoount it in the books os accounts of f.y. 2009-10.
06 May 2010
As per my opinion, credit the expense head of current year. I.e current year expense is reduced by Rs.2000/-
Other expert's veiws are solicited.
Other expert's veiws are solicited.
06 May 2010
Provision is reversed and will be treated as income in the current year of Rs, 2000.
Entry.
Provision for exp. Dr.
To P&L account....
Cannot reduce the expense in current year. its not allowed.
in income tax no impact.. deduct it at time of calculation of tax from P&L account as it was disallowed in last year.
Entry.
Provision for exp. Dr.
To P&L account....
Cannot reduce the expense in current year. its not allowed.
in income tax no impact.. deduct it at time of calculation of tax from P&L account as it was disallowed in last year.
06 May 2010
In case of last year return is already filed with ITD, then how can it is disallowed in last year.
06 May 2010
While calculation of TAx provisions are disallowed. We have already paid tax on it....for which we are crediting P*L this time.
07 May 2010
But in the last year we have already filed the eturn and provision for expense has been allowed so now what is to be done??????
07 May 2010
Dear Shving,
At the time of income tax computation , only that provision of expenses is add back , which are allowed paid basic like bonus, leave encashment.
Here it is the case may be related to any expesne like telephone exp, power exp etc.
As per my opinion, current year expenses will be reduced by such amount which is already claimed in last year.
Other expert's views are solicited.
At the time of income tax computation , only that provision of expenses is add back , which are allowed paid basic like bonus, leave encashment.
Here it is the case may be related to any expesne like telephone exp, power exp etc.
As per my opinion, current year expenses will be reduced by such amount which is already claimed in last year.
Other expert's views are solicited.
07 May 2010
Yes .. i agreee.Mr. Bansal. i confirm that for provisions.
But in this year expenses wont be reduced but it should be credited to P*L account as excess prov written back.
But in this year expenses wont be reduced but it should be credited to P*L account as excess prov written back.
07 May 2010
OK,IT CAN BE DONE , EXCDESS PROVISION T/F TO AMOUNT WRITTEN BACK A/C
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- MSME disclosure and disallowance
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- 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
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
