Hi all,
I have a query please help
how should i disclose payment to auditors when during the year debit note is raised on auditors for excess billing.
Amount of debit note is around 8 lacs.( from 1-7-09 to 30-6-11)
CY payments in total is around 14 lacs and payments in LY is around 14 lacs
i am aware i have to bifurcate payments into
a) for audit
b) for tax
c) for co. law
d) others
Subhash Dangi had rightly said that "the debit note of Rs. 8 lakhs for excess billing by auditors pertains to prior period and should be shown under Prior period items in P & L Statement. Only current year payment of 14 lakhs to be classified in to category-wise."
Just to add one its better for you if you can check with the other party. Since any type of mispresentation is not allowed. If the Auditor had shown the last year payments in different way hen you can give a note in current year books and get it approved by Board of Directors at AGM.
CAclubindia
