Accounting entries for it provision
This query is : Resolved
Guest
Guest
(Querist)
16 August 2011
Hallo everybody,
As per assesment order if the company is paid tax more than the provision than how to adjust the tax paid amount ?
Is it a prior period item ? if not what is the treatement ?
As per assesment order if the company is paid tax more than the provision than how to adjust the tax paid amount ?
Is it a prior period item ? if not what is the treatement ?
Preety Parik
(Expert)
16 August 2011
I guess a IT refund is due to you. only when u receive the amount of refund, credit the amount received as IT refund to P/L account and deduct the same in computation of income for the year in which It refund is received.
2. Only interest on refund shall be offered to tax.
2. Only interest on refund shall be offered to tax.
Guest
Guest
(Querist)
16 August 2011
No company paid excess amount than provision created. Ex: Provision for tax (IT Payable)50,000/- and as per assesment order company paid again 20,000/-
So the above 20,000/- what is the treatment ?
I think the entry will bw
Reserves A/c dr 20,000
to Provision for Tax 20,000
So the above 20,000/- what is the treatment ?
I think the entry will bw
Reserves A/c dr 20,000
to Provision for Tax 20,000
CMA Ramesh Krishnan
(Expert)
17 August 2011
Need to transfer Income tax account
Dr: Income tax account Rs.20000
Cr: Provision for Income tax Rs.20000
Dr: Income tax account Rs.20000
Cr: Provision for Income tax Rs.20000
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