28 May 2011
M/s XYZ Pvt. Ltd. delivered goods to M/s ABC Ltd. worth Rs. 30000 but received Rs. 22000 against the payment, the rest of the amount Rs. 8000 was debited to Late charges account under indirect expenses by M/s XYZ Ltd. Whether the Rs. 8000 will be an allowable expenditure or disallowable expenditure?
28 May 2011
Yes this is allowable expenditure, as amount is not material, still you should have proper supporting in this regard, b'cos Assessing Officer may ask during the asseement.
CAclubindia
