sayad (Executive) (203 Points)
06 October 2023HI
Any repair work carried in year 22-23 and have incurred expenses for this repairs in 22-23 and the payment received in FY23-24 so for tax purpose for which year expeses are considered as the payment is reievd in next year
and when we received the payment will that year it will be considered as income and for which year the expenses will be taken when filing return
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 06 October 2023
One should book expenses & incomes when the job or work happens. All the payable or receivables will remain balanced as an outstanding for the financial year if not done on that particular year .
N. A
(JOB)
(45 Points)
Replied 06 October 2023
DEAR,
SINCE THE REPAIR WORK WAS DONE IN THE FINANCIAL YEAR 2022-23,
THE INCURRED EXPENDITURE SHALL BE ACCOUNTED FOR IN THE BOOKS ON ACCRUAL BASIS BY PASSING A JOURNAL ENTRY
FY 2022-23
REPAIR EXPENSES A/C Dr Rs.xxxxxxxxx
TO VENDOR A/C Cr: Rs.xxxxxxxxx
AND ALSO IN THE SAME WAY THE CORRESPONDING REVENUE SHOULD ALSO BE RECOGNISED
IN THE SAME YEAR ON THE BASIS OF MATCHING CONCEPT .
CUSTOMER/DEBTOR A/C Dr Rs.xxxxxxxx
REVENUE/SALE OF SERVICE A/C Cr: Rs.xxxxxxxxxx
ABOVE PROCEDURE SHALL BE FOLLOWED IRRESPECTIVE OF PAYMENT RECEIPT AND INCOME TAX SHALL BE PAID FOR FY 2022-23 ONLY..
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