22 May 2008
Disallowance of expense - in case TDS is not deducted and the amount is carried forward in inventory. What would be the effect of the amount which ought to be disallowed
22 May 2008
hi every1 whether due to this disallowance my carring amount of closing stock will be reduced by that amount and consequently my opening stock for next year?
22 May 2008
If it is debited to purchase, it will be disallowed as purchase expense. In the case of inventory it would have already been valued. How will you change it on the basis of dis allowance?
Thus if total cost if Rs. 130/- if TDS had to be deducted on contract expenses, transport expenses and design cost and the same not being deducted then Rs. 30/- will be disallowed and the carrying amount will be Rs. 100/-?
Allowance/disallowance has nothing to do with inventory valuation. The adjustments is only in tax computation and has nothing to do with normal accounting.
CAclubindia
