Treatment of Prepaid expenses
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 July 2010
Wether prepaid expenses will be allowed or disallowed under income tax act for P & L of company
17 July 2010
Prepaid exp as in actual sense not an expense. Its a current asset. This will be transferred to expense account only once it expires i.e next financial year & will be allowed as expense in P/L of the company under IT laws.
17 July 2010
Agreed.
Preapid expense shown in Current asset.
These are t/f to respective expenses account in that year for which they are related.
Preapid expense shown in Current asset.
These are t/f to respective expenses account in that year for which they are related.
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