Company's majority of stock which worth's 2 crores of the total stock of rs.2.9 crores was lost due to a fire accident in the month of August and the stock was not insured. Company can recover nothing fom the stock lost. In this situation, I think, company has to recognise the entire loss in this financial year. Am I correct?
2 Replies
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 03 May 2012
Mr Sumit,
You also have to reverse any input tax credit already claimed with respect to the damaged stock in the VAT returns......MJK
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