Advance tax & provision for tax

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2012 If advance tax was 10 lacs and provision for tax was 13 lacs which was made as per the figure from stat audit, then in tax audit the tax liability came as 17 lacs ...
Can anyone suggest me the journal entries to be passed in this case ...

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

19 June 2012 Dear User,

Once the audit is finalised the provision for current tax can not be changed even if it differs from tax audit.
It does not affect the tax as per tax audit report. No Accounting entry will be passed once the financials are signed.

Entry for Short/excess provision for tax can be passsed in next year.
Advance tax is totally differnt from provison and has nothing to do with provisions.

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2012 These figure relate to 2010-11, Now can u suggest me the entries ?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

20 June 2012 Provison for Income tax A/c Dr. 13 lacs
To Provision for Income tax(AY.11-12) 13 lacs

Advance Tax A/c Dr 10 lacs
To Cash/Bank 10 lcas

At the time of assessment u/s 143(3) or on expiry of time limit u/s 143(2), the amount of advance tax will get adjusted with provision for income tax.

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