Hello everyone,
I am currently doing an audit of a film production company. The company has taken a overdraft from a bank to run a business. Now Expenses incurred for making a movie (all direct and indirect) are considered as WIP for that company till the time movie is completed and gets censor certificate.
My query is , as that overdraft has been taken for producing a movie , its an indirect expense for the company, will it be included in WIP calculation?
Menu
Wip for a film production company
Replies (1)
Hi Mrunmeya,
U can included the interest on OD etc in WIP, but u can recognise the profit on presumptive method. Further the indiret expenses u can take as prorata basis i.e., 50% - 50%
Recent Threads
- Please advice what itr to file for AY 2025-26
- Reporting Capital Gains of NRI in ITR
- Gratuity income as salary income on AIS portal. Is
- 80C deductions not being allowed in ITR2 for old r
- Unable to submit ITR 1 return
- Direct Tax(Income from Salary)
- Income from House Property or Business
- 44ADA Business code 14005
- How to rectify Form 67 that is already submitted
- Which year to consider for Property tax if sold af
Related Threads
CAclubindia
