What is the treatment of prior Period expenses, that were not booked in last year but arr booked this year.
Will the same be disallowed in current year and added to income in income tax ?
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Prior Period expenses : Income tax
Replies (3)
Quick Summary
Prior period expenses are not allowed in current year untill and unless the expenses have crystalised during the year.
The prior period expense partaining to earlier years has been a matter of litigation whether such expense could be allowed as deduction during the current year .
The prior period expense partaining to earlier years has been a matter of litigation whether such expense could be allowed as deduction during the current year .
For treatment you refer IND AS 8 and AS 5
What is the meaning of crystalization of expense in thre current year?
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