Written of bad debts

CA. Kasi Reddy Nallappa Reddy (Chartered Accountant) (153 Points)

08 April 2019  

Hi,

We paid advance to the vendor for receipt of services the services not yet received. However, he become a bankrupt. The amount whatever we have paid, we are going to write off in the books of account as a bad debts. 

Please clarify whether same shall be allowed as bad debts in the Income Tax computation for Previous Year, if yes, kindly quote the section and relevant rules.

 

Thank you