Friends/Seniors
Is provision for doubtful debt an allowable expenditure for computation of Book Profit for purpose of MAT. Will the treatment be different if the assessee uses the term provision for bad debt in place of provision for doubtful debt.
Regards,
As per AS-29, Provision should be made for Present obligations and when there is a reason to believe that there is probable outflow of economic resources which can be estimated reliably. i.e it means Ascertianed liability. While calculating MAT, Provision for Ascertained liablities can be deducted hence no problem what ever the nomenclature may be. no problem whether it is Provision for baddebts or provision for Doubtful debts if it is Ascertained liablity as per AS-9
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