VISHAL GUPTA (MBA-Finance) (145 Points)
30 July 2016My company had taken OD against properties from Bank for the period of 14 years. The Bank had debited Rs.710000/- in Feb-2016 as Processing Fees for the period 14 years. Now i want to know that can i book processing fees as prepaid expence in my account book or total amount of Rs.710000/- book in Fy 2015-16 as processing fees. Please suggest.
CA Saurabh Singh
(Practising Chartered )
(974 Points)
Replied 01 August 2016
Hello Vishal,
Yes pooking of prepaid expenses can be correct treatment for the same, as you have ultimately made an advance payment and each year debiting the proportionate expenses and crediting the prepaid account.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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