Accrued liabilities
This query is : Resolved
09 April 2020
Hi,
Should accrued liabilities while preparing financials where invoices have not been received yet include GST?
Should accrued liabilities while preparing financials where invoices have not been received yet include GST?
10 April 2020
If you are eligible for ITC then the accrued liability should be recognised net of GST else the gross amount should be recognised.
17 April 2020
Check the GSTR-2A .
If the counter party has sent GST through GSTR-2A ,you can get invoice details.
So you should Account for the accrued liabilities..
05 May 2020
I think the amount needs to be taken is inclusive of any GST as the amount of GST on the invoice is also a liability for us to pay as and when presented and when we are preparing Financial Statements it is better to have full picture so as to have a true and fair view of the financial positions of the business organisation as on a particular date. Excluding GST amount will not represent a true, fair and proper position of the business organisations.
13 May 2020
@Asha Kanta Sharma - You are right to say that the liability to pay to supplier is for Gross amount inclusive of GST. But provision for expenses is made for stating correct Profit/ Loss. The GST liability is not an expenditure as it can be availed as ITC. Secondly GST credit can not be availed and accounted for until inter alia two conditions are fulfilled i.e. 1. the goods or services have been received and 2. the invoice for the same is received
It may be appreciated that the provision is made only where second condition is not fulfilled and therefore neither the GST can be recognised as expenditure nor the ITC could be recognised.
It may be appreciated that the provision is made only where second condition is not fulfilled and therefore neither the GST can be recognised as expenditure nor the ITC could be recognised.
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
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
