TaxTMI 
TaxTMI 
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
Prior period expense
29 Sep 2016 
8 Replies 
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Prior period expense accounting depends on provision and threshold; service tax/CENVAT credit allowed if invoice is within one year.
Prior period expenses should be classified by whether a prior provision exists; amounts above the specified threshold are charged to the Profit & Loss Adjustment account, otherwise to current year expenditure. For tax credit, apply the point of taxation and the statutory time limit: CENVAT/service tax credit is available if the invoice is within one year of issuance, so an invoice dated in the current month for earlier services may still qualify if it meets the one year rule. (AI Summary)
Prior period expenses should be classified by whether a prior provision exists; amounts above the specified threshold are charged to the Profit & Loss Adjustment account, otherwise to current year expenditure. For tax credit, apply the point of taxation and the statutory time limit: CENVAT/service tax credit is available if the invoice is within one year of issuance, so an invoice dated in the current month for earlier services may still qualify if it meets the one year rule. (AI Summary)