Page 41 - TAX4862/2 APPLIED TAXATION

GENERAL DEDUCTION FORMULA

Prepaid Expenditure s23H

Section 23H limits the deduction as follows:

 Goods: so much of the expenditure as relates to

the goods actually supplied to the person in that

particular year.

 Services and other benefits:an amount that bears

the same ratio to the total amount of the

expenditure as the number of months in the year

during which the services are rendered bears to the

total number of months during which the services

will be rendered.

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