Unprovisioned expenditure.. tax audit impact

Some Plant AC maintenance charges for previous year  was not provisioned.. it is taking place in current year. How to deal with prior period unprovisioned expenditure? What about tax audit impact? Is it AS 4 , Cl 44 of Form 3 CD. 

 

Please advise 

Replies (3)
Quick Summary
This discussion addresses how to manage unprovisioned expenditure from a prior year that is being expensed in the current year. It explores whether this should be treated as a contingent liability and its implications for tax audits, specifically referencing AS 4 and Clause 44 of Form 3CD. Advice suggests booking the expense in the current year with a note indicating it relates to the previous year.

Unprovisioned expenditure has to be qualified as contingent liability with a notes on accounts.
You can book the expense in CY and note as "Previous Year Expenditure".
No not necessarily

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