Provision for audit fee
satya (no) (88 Points)
15 June 2016
audit fee of 2015-16 can claim in 2016-17 as per income tax act?
Harshit Kabra (INVESTOR)
(Student CA final)
(1113 Points)
Replied 15 June 2016
Say like , u have provided a legal and professional provision for 1lac rupees , subsequently if the actual expenses found 1.5Lac , then u have to treat 50000 as prior period expenses.-
The Journal Entry will be
Audit Expenses provision A/c Dr 100000
Prior period expenses(if short provision provided) Dr 50000
Bank A/c Cr 150000
As per AS-5 the nature and amount of prior period items should be separately disclosed in the statement of Profit and Loss in a manner that their impact on current profit or loss can be preceived.
Thanks
Harshit
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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