Excess short provision

This query is : Resolved

Report Abuse Follow Query Ask a Query

ghanshyam

ghanshyam (Querist)
Follow

15 December 2007 Pls Define Excess Short Provision?

thanx
regards
Ghanshyam

CA. Vineet Grover

CA. Vineet Grover (Expert)
Follow

15 December 2007 hi ghansham,

The issue of excess / short provision arises when the provision as per books are different with the IT Order issued by the IT department on assessment.

At such a situation, the excess / short provision are adjusted effecting the profit & loss account.

The said treatment shall be effected below the line the profit & loos account.

For further clarification feel free to reply.

rgds/
vineet