Accounting Entry for deferment of sales tax
This query is : Resolved
12 September 2009
dear sirs ,
Plz suggest me the accounting treatment of defferment of sales tax , since there is a opening balance of DFT SALES TAX IN Balance sheet & in current year , concern has paid the tax out of it , how to adjust the balance ? if expensed in P&L , WHAT IS THE ENTRY ?
Plz suggest me the accounting treatment of defferment of sales tax , since there is a opening balance of DFT SALES TAX IN Balance sheet & in current year , concern has paid the tax out of it , how to adjust the balance ? if expensed in P&L , WHAT IS THE ENTRY ?
30 September 2009
if company has opted composition scheme then it will be an expenses in profit and loss account otherwise it would be only a discharge of liability and after payment only that laibility willl be removed from balance sheet.
the entry would be in first case:-
sales tax Dr.
to cash
Profit and loss a/c Dr.
to sales tax
as sales tax has been paid then defferd sales tax will get reduced.
in second case the entry would be:-
deffered sales tax a/c Dr.
to cash
as above again deffered sales tax will get reduced.
the entry would be in first case:-
sales tax Dr.
to cash
Profit and loss a/c Dr.
to sales tax
as sales tax has been paid then defferd sales tax will get reduced.
in second case the entry would be:-
deffered sales tax a/c Dr.
to cash
as above again deffered sales tax will get reduced.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Under construction property in ITR
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Upload Level ValidationITR3Category of Defect B/D
- Not able to file ITR
- Building tax payment deduction in rental Income
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
