Prior period

Yes it will be considered as prior period items.
& the same will be debited in the P&L Account

 

Regards

Piyush Tanwar

M - 9717468521

Are you talking about inlcome tax or accounts? Kindly clarify because prior period items as per AS will not always be allowable as per income tax act. There is no assessment year and financial year in accounts.

As per income tax it is covered under prior period item and not allowed

I am talking about tax..section 43b says tax expense is allowed on payment basis only if otherwise allowable. But in this case provision in books was not made in earlier years. So it wont be allowed as it is a prior period item?

Duty paid is allowed on payment basis except income taxes. It will be allowed now on payment basis. This disallowance attracts only if taxes are hitting p/l. So if you not calimed any tax as an expense in earlier year same can be claimed now. Because if you had claimed in return same would have been disallowed which is the same as not caliming it.