Loan fees amortisation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2010 Dear all,

whether the processing fees on renewal of credit policy/ buyer credit can be amortised?

if company has a policy of amortisation of processing fees of long term loan and short term loan then has to amortised the above.

if, no then is there any violation of AS, company law or income tax provision.

Kindly reference to other companies policy or case law in above regards.

Guest

Guest (Expert)

24 August 2010 as per my view the renewal fees is charged annually by bank and hence it should be charged to p&l account for the year it pertains.