W/Off
This query is : Resolved
MANOJ CHOUDHARY
(Querist)
14 April 2009
Dear Expert
Please help regarding my queary about Debtors W/Off
last year(2007-08) my client tax liabilities as per audited balance sheet Rs. 3.00 Crore
but this year(2008-09)we observe in last year one of Debtors which amount approx 1.00 Crore which are likely Bed debts and not taken Bed & Doubtful debts provision and we want to take provision in this year
so please advise regarding how affect tax liabilities last year 3.00 crore and what entryies pass in account
Thanks
Please help regarding my queary about Debtors W/Off
last year(2007-08) my client tax liabilities as per audited balance sheet Rs. 3.00 Crore
but this year(2008-09)we observe in last year one of Debtors which amount approx 1.00 Crore which are likely Bed debts and not taken Bed & Doubtful debts provision and we want to take provision in this year
so please advise regarding how affect tax liabilities last year 3.00 crore and what entryies pass in account
Thanks
Shyam Lal Naik
(Expert)
14 April 2009
It will not affect tax liability of FY 2007-09. It will neither affect tax liability of FY 2008-09.
Making a provision for bad and dobutful debt is not an allowable expense. To claim the expenditure, the amount must be written off as bad debt in contra distinction to mere provision.
Making a provision for bad and dobutful debt is not an allowable expense. To claim the expenditure, the amount must be written off as bad debt in contra distinction to mere provision.
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