Are interest on FBT & Interest on Income Tax refund below the line items??
urgent query regarding accounting treatment
Vinita (CA final (clrd grp 1) CS B.com(hons)) (135 Points)
27 September 2010
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 27 September 2010
means u have recived interest on refund
CA Sourabh Agarwal
(Chartered Accountant)
(4240 Points)
Replied 27 September 2010
no they can not be below the line itmes......
Abhishek Sinha
(Sr. Mgr - Accounts - Tata Steel)
(24 Points)
Replied 27 September 2010
No, any item shown below the line must be an aapropriation out of current period earnings.
The recipts are earnings in themselves & not an appropriation.
Vinita
(CA final (clrd grp 1) CS B.com(hons))
(135 Points)
Replied 27 September 2010
I have paid Interest on FBT & received interest on IT refund..
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 27 September 2010
interest on refund is income from other source hence would be taxable and intt on fbt is penalty hence would be disalowed.
Abhishek Sinha
(Sr. Mgr - Accounts - Tata Steel)
(24 Points)
Replied 27 September 2010
Vinita,
Irrespective of whether it is a charge or a credit to P&L, the character of the transaction in so far as whether it is an appropriation or not doesnot change.
Both Income from Interest on Refund & Interest paid on FBT would be shown above the line.
vijay
(Accountant)
(884 Points)
Replied 27 September 2010
Interest on FBT paid & Interest received on IT Refund cannot come below the line
CA Vinit Ratnaparkhi
(Internal Auditor)
(66 Points)
Replied 27 September 2010
| Originally posted by : vinita | ||
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Are interest on FBT & Interest on Income Tax refund below the line items?? |
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No.Interest on income tax refund is taxable under IOS and interest on fbt is like a penalty.Hence it is disallowed.
Vaibhav Aggarwal
(ARTICLE)
(21 Points)
Replied 28 September 2010
INTEREST ON IT REFUND IS AN INCOME FROM OTHER SOURCES & INTERST ON F.B.T IS A PENALTY IS DISALLOWED.
Nitin Sonawane
(Accounts executive)
(27 Points)
Replied 05 October 2010
| Originally posted by : vinita | ||
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Are interest on FBT & Interest on Income Tax refund below the line items?? |
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Dear all,
I am working in a media channel in Mumbai & appearing for IPCC too....
I want to what are the essential things have to present in invoice when making Journal entry of Input Service Invoice.
Actullaly I have to enter one bill for food provided to our office employee while they were on tour.
But the bill produce by our employess includes Service tax amt also but without Service tax reg. no. of that food provider.
Can anyone help me what to do in such case....wht document should I ask from that food provider to enter the same journal entry ....
pls help me in this case.....or kindly sent me any guidlines in relation to passing JV for Service tax and assentials things require for the same...
my id is nitin_7107 @ rediffmail.com
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