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Prior period expense

Tax queries 482 views 1 replies

Dear Friends

 

Can anyone please explain how to check Prior period expenses while doing tax audit??

 

Apart from taking management representation letter or on the basis of period or date on which it is incurred ; is there anything else we can check?? 

 

Also, how can the assessee put forward his argument of reducing the dis-allowance in such cases??

 

Kindly solve the query

 

Thanks & Regards

Replies (1)

Dear Rohan,

The best way is to track outflow with expenses booked in current year. Any excess outflow over and above expenditure booked can be mostly prior period expenditure.


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