Write off
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 March 2012
company some export business and customer did not pay the total due money. so in how many years we can write off that loss in p&l a/c. how many years are allowed to write off that loss?
Guest
Guest
(Expert)
06 March 2012
No rule as such. Bad debts to be written off when chances of recovery are not there.
Mihir Doshi
(Expert)
07 March 2012
Export Receipt should realise in one year time from the date of shipment. From your query, it sounds that party is not going to repay the amount and chances are very remote for its collection. If management is of the opinion that recovery wont be feasible then write it off.
Suppose, the same is received then book the same amount as other income and offer the same for tax u/s 41 in that year.
Thanks
Mihir Doshi
Suppose, the same is received then book the same amount as other income and offer the same for tax u/s 41 in that year.
Thanks
Mihir Doshi
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