IN amalgamation when there is inter company owing why do we calculate the provision for doubtful debts on the total balance of debtors and not on the net amount i.e after deduction the interco. debt as it cant be a bad debt ??
1 Replies
CMA Ashutosh Kumar Gupta
(Unit Financial Controller)
(1015 Points)
Replied 11 February 2013
The trading debts-intercompany do form the part of provisioning hence the crux of the query is to determine whether such debts are trading debts or loans. Had there been the relationship of trading debts inter-company debtors (including inter-company) will be the basis for applying the provisions.
Recent Topics
- GSTIN Suspended Form GST Reg 17
- Request for GST Clarification regarding ITC
- Is Capital Gain exemption available for Property a
- EPF CONTRIBUION BY EMPLOYER
- Letter of credit -seller procedure
- Filling form 26 QB
- RPT AND ITC ISSUE
- Tax Liability and ITC Summary related Issues
- REQUIRED FORMAT FOR AMENDMENT TO PARTNERSHIP DEED
- TDS Applicability on Hotel Room Rent Exceeding Rs
Related Threads
CAclubindia
