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Provisioning for date extended st return

Mohammad saifee (Entrepreneur ) (72 Points)

07 March 2014

PLEASE ADVICE ME: One of my client did not made provision for fees for service tax return for the period October to march 13. The return was files in august 13 due to technical problem of aces website and consultant issued a bill in November13 for 2500/- for the said filing of return ( fixed fee for return ). Whether the provision would have been made in the balance sheet as at 31/03/2013. Looking for suggestions!

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3 Replies

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 07 March 2014

Sir,

If you want to show the said provision in the Balance Sheet, then you do, as a Consultancy Fee, If you do not want to do not make the provision, but my suggestions make the provision said amt.

Mohammad saifee (Entrepreneur ) (72 Points)
Replied 07 March 2014

Mr. Harendra sir, That client didn't made provision in his audited balance sheet and statutory auditor also didn't commented on it. Now can we treat that fees paid as prior period expense in the current year.

Mohammad saifee (Entrepreneur ) (72 Points)
Replied 07 March 2014

As in my opinion this payment should not be considered as current year expenses. Apart from that , client deducted tds and filed return in the current year (2013-14))