Written off capital advance

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nitish (Querist)
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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

Amol S Joglekar (Expert)
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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.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 June 2014 need more clarification on this issue..........

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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.

nitish

nitish (Querist)
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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

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 June 2014 claim where friend? its is not a revenue expenditure. So what loss you wish to claim?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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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.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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..

Amol S Joglekar

Amol S Joglekar (Expert)
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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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