One of my client has shown the INPUT Vat paid as asset in previous years balance sheet, as it was supposed to be refunded from the department. But, now, is has become non-recoverable from the dept.
My clarification is:
1. Can I claim all the prior period expense as an expense from the current year profit and pay the income tax on the net amount arrived.
However, I have made the necessary disclosures in the Report and Profit and loss account.
Kindly advise asap.
Thanks in advance,