Hi,
While preparing financial I am confused in presentation of labour cess payable and External development charges payable, both are the estimated liability.
I am confused in presentation above expenses as expenses payable or provision? please let me know the correct treatment and as per income tax act this will be allow or not?
43B applies to tax duty and cess i.e they are allowed only of actually paid before ITR due date.
labour cess = 43B applies, income tax allows only if u have actually paid irrespective of the fact whether shown as expenses payable or provision.
redev charges = i am unclear as to its exact nature. if they are NOT tax/duty/cess, it can be claimed on accrual basis. may be shown as provison/exp payable
CAclubindia
