IF PROVISION FOR AUDIT FEE WAS MADE IN ASSESSEE'S BOOKS ON 31.03.2018 (ON MERCANTILE ACCOUNTING BASIS).
Accounting Entry Recorded In Books: Audit Fee a/c Dr... 1,00,000 (P&l a/c)
to audit fee payable a/c 1,00,000 (Current liability- Provision)
AND BILL FOR AUDIT FEE WAS RECD. ON 31.10.2018 AND GST CHARGED BY AUDITOR ON ABOVE BILL (CA'S ACCOUNTS ARE PREPARED ON CASH BASIS) THEN WHETHER ASSESSEE CAN TAKE CREDIT OF GST PAID ON THAT AUDIT FEE BILL. BECAUSE ASSESSEE HAS ALREADY BOOKED EXPENSES IN PREVIOUS YEAR AND MADE PAYMENT OF BILL ONLY IN CURRENT YEAR.
My que is client received audit bill in 31.10.2018 so how to claim input on that bill, because the provision itself reflectd in opening payable.
2.If we claim input means we cant take total audit fee as expenses, but what about the entry made on 31.03.2018
CAclubindia
