26 March 2009
Respected Sir, Our client place is availing the service of man power supply from an agency since 2004.the party has however not charged any service tax for his service,though there was an obligation for the same and now he is claiming the service tax amount which he failed to recover and we agreed to pay the same.. now the question is should we book the expenditure as prior period or not?
26 March 2009
For the purpose of income tax and books of account it will be treated as prior period expenditure and with reference claiming of service tax it is like current payment.
CAclubindia
