Prior period expense

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..... Prior period expense
Query (Issue) Started By: - Sanjay Vasava Dated:- 29-9-2016 Last Reply Date:- 2-10-2016 Accounting - Auditing
Got 8 Replies
Companies Law
Dear Sir, Please explain which type of expenses can be booked as prior period expenses. How can done accounting?? Any audit points? Thanks & Regards, Sanjay Vasava Reply By MARIAPPAN GOVINDARAJAN: The Reply: Normally pri .....

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..... or period expenses are booked for which already there is no provision has been made. The prior period expenses are booked in the Profit & Loss Adjustment account if it exceeds ₹ 5 lakhs. If it is below it is used to book it for current year expenditure. Reply By Sanjay Vasava: The Reply: Dear Sir, Service tax credit availability on prior period expense. Please suggest. Thanks & Regards, .....

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..... Sanjay Vasava Reply By MARIAPPAN GOVINDARAJAN: The Reply: First you have to consider the provisions of point of taxation. Then you have to consider the time limit for taking the credit. Reply By Ganeshan Kalyani: The Reply: The provision states that the credit shall be taken within one year from the date of invoice. Hence if the prior period expense is booked against the provison of previous .....

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..... year then also credit would be allowed if the invoice is less than one year old. Reply By Sanjay Vasava: The Reply: Dear Sir, Service provider raised the invoice and mentioned current month date but service period has mentioned feb - 2016. In this case I booked an invoice in respective heads as prior period expense. But I need clearity, we can avail service tax credit or not. Thanks Sanjay .....

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..... Vasava Reply By Ganeshan Kalyani: The Reply: Yes, you can take the credit. Reply By YAGAY AND SUN: The Reply: CENVAT credit can be availed within one year from the date of issuance of an Invoice. Reply By Ganeshan Kalyani: The Reply: I am also of the same views as expressed by learned experts.
Discussion Forum - Knowledge Sharing .....

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