Revised schedule vi
This query is : Resolved
Jainam Shah
(Querist)
04 December 2012
Dear Sir/Madam,
Can you please let me know that why salary payable is not considered as trade payable and is shown in other current liability even though trade payable includes payments for utilization of goods and SERVICES?
Can you please let me know that why salary payable is not considered as trade payable and is shown in other current liability even though trade payable includes payments for utilization of goods and SERVICES?
CA CS Amit S. Kedia
(Expert)
04 December 2012
A payable shall be classified as a ‘trade payable’ if it is in respect of the
amount due on account of goods purchased or services received in the normal course of business.
It is not the course of business to pay salary to employees. The company is not dealing in paying salary for the services rendered by the employees.It can never be said payable for "trade"..
amount due on account of goods purchased or services received in the normal course of business.
It is not the course of business to pay salary to employees. The company is not dealing in paying salary for the services rendered by the employees.It can never be said payable for "trade"..
Jainam Shah
(Querist)
05 December 2012
Thanks alot for your instant reply. I got my querry resolved. thank you.
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