What is deffered expenditures? and tax related to it?

Question

have to pay yearly?

Answer 1

Expenses incurred which do not apply to the current accounting period. Instead, they are debited to a 'Deferred expenditure' account in the non-current assets area of your chart of accounts. When they become current, they can then be transferred to the profit and loss account as normal.

Answer 2

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Answer 3

There are certain expenses that are paid for forthcoming financial years......

Ex- an expense of say Rs.30000 is to be paid for 3 years of service, so if the full amount is debited in the current financial year then there would be no such expense debited on the coming 2 balance years....so, what people does is they calculate a certain portion of the amount which can be taken into current fin year. like say 10000 for each year then Rs.20000 (balance amount) will be shown as deffered expenditures...these deffered figures are not taken into tax consideration....so, many a companies also take advantage of this and hence show there huge expenditure as deffered so as to show some descent profit and net profits in there financial books....

Answer 4

Deferred expenditures account to the expenses that you cannot show in the current period of the balance sheet or tax returns.