Admissibility of prior period expense under it act
This query is : Resolved
10 September 2011
We have incurred Around Rs. 6 lacs of local authority expense of which only 1 lacs pertains to current period while remaining realtes to previous periods.
The notice for the same expense was served for the 1st time in May'11 by the authority for all the previous years i.e. from 2005-06 to 2010-11.
We have paid the full amount in July'2011.
Can we claim these expense in full? if yes, then are these expenses allowed in the F.Y 2010-11 by making provision or in F.Y. 2011-12 in which we have paid?
Expecting early response....
The notice for the same expense was served for the 1st time in May'11 by the authority for all the previous years i.e. from 2005-06 to 2010-11.
We have paid the full amount in July'2011.
Can we claim these expense in full? if yes, then are these expenses allowed in the F.Y 2010-11 by making provision or in F.Y. 2011-12 in which we have paid?
Expecting early response....
11 September 2011
Prior Period Expenses are not allowed under Income Tax Act
15 September 2011
I am really sorry for this but the expense being statutory payment to local authority thus as per section 43b we may claim it
As per Section 43B clause (a) - Any sum payable by way of tax, duty,cess or fee (by whatever name called under any law for the time being in force) are deductible on payment basis subject to :-
1. payment of such expense is made on or before the due date of filling of return and
2. Evidence of such payment is submitted along with the Return of Income
We are having evidence of payment as well
As per Section 43B clause (a) - Any sum payable by way of tax, duty,cess or fee (by whatever name called under any law for the time being in force) are deductible on payment basis subject to :-
1. payment of such expense is made on or before the due date of filling of return and
2. Evidence of such payment is submitted along with the Return of Income
We are having evidence of payment as well
15 September 2011
Whether this expense cannot be claimed U/S 43B
15 July 2023
"Sorry, I am not a featured member."
For featured members contact....
https://www.caclubindia.com/catalogue/featured.asp
For featured members contact....
https://www.caclubindia.com/catalogue/featured.asp
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Tds on building rent monthly
- GST ON EXPORT COMMISSION
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
