What is the tax treatment of provision made for warranty? Which section applicable?
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 25 March 2010
Amir
(Learner)
(4016 Points)
Replied 25 March 2010
Dear Hireshire,
Provisions are not allowed as deduction in general.
But if provision is for ascertained liabilitiy/expense then the same can be claimed.
The above principles have been established in Judgements.
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