Short payment received from debtor
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 April 2016
Hello Experts,
I am service provider and i have issued the invoice Rs. 117679/- to service receiver but service receiver has deducted Rs. 15000 as penalty for Non completion the contract within the deadlines, please let me know weather this 15000 is deductable in profit & loss account as bad debts or not,
Regard
Shyam sunder
I am service provider and i have issued the invoice Rs. 117679/- to service receiver but service receiver has deducted Rs. 15000 as penalty for Non completion the contract within the deadlines, please let me know weather this 15000 is deductable in profit & loss account as bad debts or not,
Regard
Shyam sunder
CA R SEETHARAMAN
(Expert)
15 April 2016
Debit the amount under expenditure head as penalty for delayed completion of contract. This expenditure can be deductable in P & L ac.
Message likes :
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Murtaza I Bhagat
(Expert)
15 April 2016
Its a business loss which is by name of penalty of late completion so you can book in P&L as late completion penalty.
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