22 September 2010
Respected Experts Is it correct to show Provision for tax equal to the amount of Tax Payable and Interest u/s 234A & 234B instead of showing interest payable seperately in P&L as an expense?
22 September 2010
Provision for taxation is to be made for income tax plus surcharge (if applicablea)plus cess plus secondary and higher eduction cess. Thus the gross amount should be shown in P & L as well as in B/S.
22 September 2010
provision of income tax also included interest u/s 234.you can not disclose interest payable as expenses in p&l a/c. Provision of income tax must be disclosed under the line of p&l A/c
22 September 2010
Second line of the query is overlooked . Observation of Navin Ji is undoubtedly correct meaning thereby provision is to be made for IT + SC+ CESS+ SHE CESS + 234 interest. Error is honestly regretted.
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