Query for prior period exps

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Querist : Anonymous (Querist)

13 May 2017 whether service tax paid by company under RCM be treated as prior period expense????

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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13 May 2017 hello,

Answer of this lies in your query itself,

Service tax paid whether under normal circumstances or under reverse charge method is never treated as an expense because we can avail credit of same in future and if any item cannot be treated as an expense how can it be classified as prior period expense.