25 April 2013
In an IT company there is accumulated Debit Balance in Service Tax Credit Account. In the past 5 years this debit was created with a motive to take credit against service tax paybale on domestic sales in future. DUe to change in business model, there is no likelihood of any domestic revenue. In this scenario if the Debit balance of Service Tax account is written off, in the IT computation should it be treated as a disallowable expenditure and so added back to the income? Or is it an allowable expenditure.
CAclubindia
