Prior period expenses

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2015 DURING OUR SERVICE TAX AUDIT AUDITOR POINT OUT SOME SERVICE TAX NEEDS TO BE PAID UNDER REVERSE CHARGES BUT AS WE HAVE NOT PAID THIS SERVICE TAX DURING THOSE YEARS (FROM 2006-2014) WE HAVE PAID THE SAME DURING 15-16 ALONG WITH INTEREST, NOW I WANT TO KNOW THE ACCOUNTING TREATMENT OF SERVICE TAX & INTEREST PAID FOR YEAR 2006-MARCH 2014.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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25 July 2015 prior period period exp means there was an ommision or error in items of income or exp while preparing financial statement of1 or more previous year.

this was not an error as you had not paid only service tax and moreover service tax is not an exp but a charge on income hence book normal entry

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2015 can you clarify me accounting entry