16 August 2012
As per Revised Sch VI, any item of expenditure, which is higher than Rs. 1 Lakh or 1% of Operating Revenue, whichever is higher, should be separately disclosed. My querry is whether Company can show such expenses under the headings not covered by format of Statement of Profit & Loss? For example, where the Travelling Expenses are higher than 1% of Operating Revenue (or Rs. 100000/- as case may be), whether Company can show such expenses directly as Travelling Expenses in Statement of Profit & Loss itself or it should be shown under Other Expenses?
Similarly, Company has incured say, Manufacturing Expenses under different heads like Labour Charges Paid, Design & Drawing Charges etc. which cumulatively go beyond 1% of Operating Revenue. Whether they can be shown separately as Manufacturing Expenses in Statement of Profit & Loss and a Note can be prepared for that or should they be shown as Other Expenses?
16 August 2012
I think you are saying the same thing as the circular contemplates. The circular says that any such exenditure is DISCLOSED which is higher than 1% of operating revenue OR 1,00,000/- You are showing it separately then what is your problem. Go ahead.
CAclubindia
