Prior period items

You need to book them in the current year as prior period items. The same are disclosed separately in the Profit and Loss accounts. You can make the payments to the vendors after booking the expenditure. However, you wont get the deduction of the same in the income tax.

Sir, thanx for the reply, but sir the books are closed now, so in that case?

Thats what i said that book in the current financial year 2011-2012 as prior period items.

ok, sir got the point, so in that case should i have to mention it sepratly in the profit and loss a/c of the year 2011-12?

Yes. You have to mention it separately.

YES, IT IS TO BE MENTIONED SEPERATELY

so,what is the treatmment as fas as TDS is concern? as the expenses are for pertaining to the the 2010-11, but i am paying them as prior period expenses for the 2011-12, so tell me the effect of that, in my currect year book.