treatment of outstanding liabilities no longer required

Save Share

This query is : Resolved

Sonal Kulshreshtha (Querist)
Follow

12 November 2009 There are certain liabilities, say on account of credit cards which have been closed and other liabilities which are no longer required to be paid. Can they be written back? and the P&L would be affected by that. Will it also affect the income tax liability?

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
Follow

12 November 2009 liabilities which are no longer required to be paid (100%sure & avidance available) is to be written off.
AS-29 Says the amount of provivion should be shown as an Expense in P/L statement and vice virsa.
yes,it also affect the income tax liability of current year.

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