one practical question
if 31-3-2009 interest recevied on LC margin money rs 819969.57 tds deducted rs 185805
but this financial year that interest amount reversel of rs 283630.76
is it prior period expenses or not
if prior period exp what about TDS
TDS return alreadt filed if any nessery to rivised the TDS return
Dear Lakshmikanth,
An item to be classified as "Prior Period Item(PPI)" as defined in AS-5 should have "error/ommission" aasociated with it pertainiing to previous year(s).
The fact that now the income is reversed is not conclusive to decide whether it is a PPI or not, if there was an error/omission during the previous year in recognizing this income, then "yes" it is a PPI & if reversal is due to certain factors which have arise during the current FY itself then it is not a "PPI"
Further, TDS return is to be filed by the deductor & not the payee, I think u mean "Income Tax Return", now no need to revise it since the tax has been deposited & the sasme has also been claimed in the return..the amount of TDS has to be refunded to the deductor.
prior period items arise out of ommisions and mistakes from previous years... the items which u r talking abt are not prior period items..
CAclubindia
