Stock destroyed , insurance claim received- taxable or not ?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 March 2018
One of my clients stock of RM & wip got destroyed due to flood/waterlogging in godown due to heavy rain.
Insurance company paid some 300000 as claim .
My question :
1. What would be the journal entry and
2. Is this claim amount taxable ??
Insurance company paid some 300000 as claim .
My question :
1. What would be the journal entry and
2. Is this claim amount taxable ??
K Srinivas, CMA CS
(Expert)
21 March 2018
Claim received on loss of Stocks, Raw materials etc is a revenue receipt and is taxable
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