02 December 2008
FBT is Direct Tax & not the indirect tax. But for accounting purpose it is like the advance payment of tax & will be grouped under Loan and advances as Advance Income Tax.
while making provision you pass the entry like FBT Expenses (indirect expenses) a/c dr to FBT payable (under provision) and after you paid FBT then pass the entry like FBT (Advance Income tax under the head of loans & advances) a/c dr to Bank.
Rajdeep,
Vijay was asking about indirect expenses you get it wrong as indirect taxes.
CAclubindia
