Purchases.

This query is : Resolved

ramesh vadnala (Querist)
Follow

28 November 2007 We have purchased Raw materail in March month and we accounted the same bills in month of April month, Please tell me that these bills treated as prior period expenses and disallowed in Incometax, pl.explain me in detail with sections

KAUSTUBH M JOSHI

KAUSTUBH M JOSHI (Expert)
Follow

28 November 2007 Please clear me the date of the bill, its treatment in your stores, date of receipt of material, dispatch details, whether the stock of the said material was included in closing stock of RM during physical verification. Please reply

ramesh vadnala

ramesh vadnala (Querist)
Follow

28 November 2007 Bill date 15.03.07 date of receipt of material 25.03.07 in stores but taken in accounts 05.04.07 and some purchases dates in march'07 date of receipts april'07 and taken into accounts april'07
these transactions are treated as prior period ?

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
Follow

29 November 2007 Since you have received the stock in last year and included in the closing stock .....it has become part of profit of last year .....the matching purchase is of last year .......as per matching principle this is last year item .......IN FACT YOUR LAST YEAR INCOME IS INFLATED TO THAT EXTNT ........YOU MAY REVISE THE RETURN OF LAST YEAR DEPENDING ON FACTS OF YOUR CASE

o.velavan

o.velavan (Expert)
Follow

03 December 2007 For first instance,you have to revise the return as stated by CA sampat jain.
In second case ,i dont know about your practise for purchase entry.In every year you follow the method that date of purchase of date of invoice or date of arrival of goods.if you follow the method as in question then o.k.But this year only you follow this method see the procedure followed in earlier period then you decide it for revised return.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kavita goel

venkanna setty

Sivanath VV

Shivchandra Jakhotia

jaspreet sidana

Subscribe Now

Purchases.

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA