30 November 2011
One of my client has received bill related to prior period & booked in current year. It has deducted tds, deposited it in time and also taken service tax input on payment basis. Whether the same will be treated as regular exp or prior period exp ?? whether same will be disallowed ??? What is its accounting treatment ??
01 December 2011
1. It is a prior period Expenses, However since you have deducted and deposited the tds in last FY on payment Basis (as you stated it is deducted and deposited in time), booked under the head of respective expense so as to avoid query from IT Department.
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