Tax treatment of iso certificate

it booked as a professional charges for the certificate from whom you received  ,tds also deducted under sec 194 j for the same

Agree with valji

I agree that If there is any professional charges incurred in obtaining the certificate thn its treated as professional charges but how can cost of iso certificate be treated as professional charges?

It can be booked in 'Legal & Professional Charges' A/c under
Expenses. This will be charged off to P&L A/c of the
relevant period.

However, if the expense is very huge & will impact the P&L
A/c of the year of expense, it can be deferred for more than
one year also.under the head 'Deferred Revenue Expenditure'.
Balance not charged off at the end of the accounting period
will be shown in the Balance Sheet under 'Miscellaneous
Expenditure' Not written off or adjusted.

An ISO certificate (such as ISO 9001 or 14001, etc.) issued by SGS India is generally treated as a business expense under the Income Tax Act.

Tax Treatment:

• The entire cost of obtaining the ISO certificate can be claimed as a revenue expense under Section 37(1) of the Income Tax Act.

• It must be:

  • Incurred wholly and exclusively for business purposes.

  • Not be in the nature of capital expenditure or personal expense.

GST Implications:

• SGS India charges GST on ISO certification services.

• If you're registered under GST and the certificate is for your business:

  • You can claim Input Tax Credit (ITC) on the GST paid.