Written off capital advance
This query is : Resolved
07 June 2014
please tell me what is the treatment of capital advance written off, can we claim as expense or not, if not then what is treatment of the same.
Amol S Joglekar
(Expert)
07 June 2014
can you please elaborate the facts? By and large, it is not deductible. But....in the cases of advance given to suppliers, where the nature of the trade demands so, it can be allowed as deduction.....pls elaborate the facts.
07 June 2014
need more clarification on this issue..........
08 June 2014
capital advance wont get any deduction in income tax. unless and until the payment made earlier has hit your profit and loss in earlier years as a sale/profit, no expense can be claimed now.
08 June 2014
suppose company give advance for rs-10 lakh against purchase of machinery and the same is written off now can we claim the said advance or not
08 June 2014
claim where friend? its is not a revenue expenditure. So what loss you wish to claim?
09 June 2014
PURCHASE of machinery is not allowed as rev exp since it is cap exp but u can claim dep on such purchase under income tax cal.
09 June 2014
Dear Tushar,
given that the querist wishes to write-off a capital advance, it is safe to assume that the machinery was not delivered to him. how does the depreciation come into picture..
given that the querist wishes to write-off a capital advance, it is safe to assume that the machinery was not delivered to him. how does the depreciation come into picture..
Amol S Joglekar
(Expert)
09 June 2014
these NEW generation will use the words interchangeably that we not only need to read between the lines but through the lines as well.........
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