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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details