Interest on loan query
This query is : Resolved
23 February 2013
sir, i have some problem i.e assume A company taken a loan from bank for land purpose and such land is for investment purpose now tell the treatment of interest on loan will be capitalised or write off??
As per AS 16 Land will not include in Qualifying Assest becz not making any construction on such land ?? can you solve this query plz
As per AS 16 Land will not include in Qualifying Assest becz not making any construction on such land ?? can you solve this query plz
23 February 2013
You shall not capitalise such interest. It is revenue expenditure.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
Message likes :
1 times
25 February 2013
thanks sir.
25 February 2013
Can you short out the basic concet of Credit note and Debit note
eg: we are purchasing a service we receive a invoice of Rs. 150000 at the time of payment we deduct a TDS assume Rs. 15000 and same deposit to Govt. next month of First week after first week we receive a credit not so tell of Rs. 50000 now tell me the treatment of excess Rs. 5000 TDS which we have deducted ealrier ....
eg: we are purchasing a service we receive a invoice of Rs. 150000 at the time of payment we deduct a TDS assume Rs. 15000 and same deposit to Govt. next month of First week after first week we receive a credit not so tell of Rs. 50000 now tell me the treatment of excess Rs. 5000 TDS which we have deducted ealrier ....
26 February 2013
First please clarify me why you are receiving credit note. I.e for which purpose you are receiving credit not either it is as discount or any other purpose etc....
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
26 February 2013
The basic concept of debit note and credit note is: In any case for the purpose of adjustment of previously completed transaction amount we uses debit note(for debiting the party's account in our books) and credit note(for crediting the party's account in our books).
For example: on 26-2-2013 we make a sale of Rs100000 to Mr.X on credit at that date you pass entry
Mr. X a/c dr 100000
To Sales a/c 100000
(Being crdit sales made through invoice no: 1)
After that i.e after issue of invoice you realised wrongly calculated the sales value for Invoice no :1 by short of Rs.10000 then you issue debit note as
Mr. X a/c dr 10000
To Sales a/c 10000
(Being sales value in Invoice no:1 date:26-2-2013 wrongly calculated short by Rs.10000 now debit note issued for the difference amount)
In case after that you realised you forget allowing of trade discount of Rs.10000 in invoice no:1 then you issue credit note as
Sales a/c dr 10000
To Mr.X a/c 10000
(Being by mistake we doesn't allowed trade discount in Invoice no:1 now credit note issued for the trade discount amount)
In case you received advance for sales, advance paid for purchases, after the sales your rate will be decreased with retraspective effect of previous dates and discount allowed to all the purchasers from that date to till current date etcc.... like that adjustments(in one word to debit or credit the party's account due the the adjustments in our books because of mistakes or revision of rates or company's policies etccc) we use debit and credit notes to debit the customer in our books and credit the customer in our books respectively.
The above explanation is made in the point of view of seller for the point of view of buyer same will be but the opposite note i.e for debit note it is credit note and reverse entry as well as for credit note it is debit note and reverse entry. One thing remember Credit note always debit in the books as well as debit note always credit in the books.
OM SAI SRI SAI JAI JAI SAI
For example: on 26-2-2013 we make a sale of Rs100000 to Mr.X on credit at that date you pass entry
Mr. X a/c dr 100000
To Sales a/c 100000
(Being crdit sales made through invoice no: 1)
After that i.e after issue of invoice you realised wrongly calculated the sales value for Invoice no :1 by short of Rs.10000 then you issue debit note as
Mr. X a/c dr 10000
To Sales a/c 10000
(Being sales value in Invoice no:1 date:26-2-2013 wrongly calculated short by Rs.10000 now debit note issued for the difference amount)
In case after that you realised you forget allowing of trade discount of Rs.10000 in invoice no:1 then you issue credit note as
Sales a/c dr 10000
To Mr.X a/c 10000
(Being by mistake we doesn't allowed trade discount in Invoice no:1 now credit note issued for the trade discount amount)
In case you received advance for sales, advance paid for purchases, after the sales your rate will be decreased with retraspective effect of previous dates and discount allowed to all the purchasers from that date to till current date etcc.... like that adjustments(in one word to debit or credit the party's account due the the adjustments in our books because of mistakes or revision of rates or company's policies etccc) we use debit and credit notes to debit the customer in our books and credit the customer in our books respectively.
The above explanation is made in the point of view of seller for the point of view of buyer same will be but the opposite note i.e for debit note it is credit note and reverse entry as well as for credit note it is debit note and reverse entry. One thing remember Credit note always debit in the books as well as debit note always credit in the books.
OM SAI SRI SAI JAI JAI SAI
27 February 2013
eg.
i am in Cable industry The above query breif is that eg.
we received a invoice from a broadcastre Rs.150000 we released the payment to boradcaster i.e Rs. 135000/-and Rs.15000/- deduted a TDS and same deposit to Govt. Next month of first week after first week we a received a Credit note Rs. 50000 from broadcaster it is for us a "Debit note" the excess TDS we deducted a Rs. 5000/- what will be the treatment of this....
At the Tym of Invoice received:
Cost A/C Dr. 133500
Input Service TAx A/C 16500
To Party 135000
To TDS 15000
(Being invoice received )
At the tym of Credit Note "
Party A/C Dr. 45000
TDS A/C Dr. 5000
To Cost A/c 44500
To Service Tax Payable 5500
( Being Credit Note received)
Is that Above Solution is correct or not?
i am in Cable industry The above query breif is that eg.
we received a invoice from a broadcastre Rs.150000 we released the payment to boradcaster i.e Rs. 135000/-and Rs.15000/- deduted a TDS and same deposit to Govt. Next month of first week after first week we a received a Credit note Rs. 50000 from broadcaster it is for us a "Debit note" the excess TDS we deducted a Rs. 5000/- what will be the treatment of this....
At the Tym of Invoice received:
Cost A/C Dr. 133500
Input Service TAx A/C 16500
To Party 135000
To TDS 15000
(Being invoice received )
At the tym of Credit Note "
Party A/C Dr. 45000
TDS A/C Dr. 5000
To Cost A/c 44500
To Service Tax Payable 5500
( Being Credit Note received)
Is that Above Solution is correct or not?
27 February 2013
Mr. Gaurav Verma Please clarify me why you receiving credit note i.e for which purpose the broadcastre issue you credit note is it for discount or any other adjustments.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
27 February 2013
we are receiving a Credit Note due to Excess cost charged by Broadcaster so thats why we are making entry of Debit Note i.e Purchase Return From My side and Sale return From his Side.
27 February 2013
In such case you can't reverse the TDS amount already credited because of you already deposited it into the bank deduction of excess TDS than required is safe side and no problem will arises so give total credit of TDS deducted Rs.15000 to such party.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
27 February 2013
sir i am unable to get u can u give a journal entry for this concept?
what is the treatment of excess Rs.5000/- TDS ???
should i make the below entry :-
TDS A/C Dr. 5000
To Party 5000
what is the treatment of excess Rs.5000/- TDS ???
should i make the below entry :-
TDS A/C Dr. 5000
To Party 5000
27 February 2013
So forget amount the reversing of TDS to the party's account at the time of credit note received pass debit note in your books as follows
Party a/c dr 50000
To cost a/c 44500
To Service tax payable a/c 5500
(Being company issued credit note no: xxxx for the purpose of decreasing of invoice amount for the invoice no:xxxxx and service tax on such amount reversed)
OM SAI SRI SAI JAI JAI SAI
Party a/c dr 50000
To cost a/c 44500
To Service tax payable a/c 5500
(Being company issued credit note no: xxxx for the purpose of decreasing of invoice amount for the invoice no:xxxxx and service tax on such amount reversed)
OM SAI SRI SAI JAI JAI SAI
27 February 2013
Because of you already given credit of TDS to the party's account and paid it into the bank so you can't recover from bank it but the party shall claim such TDS credit through Form 16A. So you issue TDS certificate for the entire amount of Rs.15000.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
27 February 2013
thank u so much sir for Query Resolve..
Jai Shani dev
Jai Shani dev
27 February 2013
Are you perfectly with confident understand the issue? else has any doubt.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
27 February 2013
Sir,
Can u teach me about Deffered Tax as per my thinking it creates when difference creates between Dep. Charged as per Income Tax and As per Company Act 1956..
Can u teach me about Deffered Tax as per my thinking it creates when difference creates between Dep. Charged as per Income Tax and As per Company Act 1956..
27 February 2013
Sir,in cable industry cable providing to primary point i.e house hold creates a Liablity of Entertainment Tax(E.T) from service provider side i just want to know that rates and due dates of that and at the time of calculation of E.T. it depends on the points or subscriber and if any subscriber getting free service of cable at such time we have to pay a E.T to the Govt.or not ??
please any one solve this problem ASAP
please any one solve this problem ASAP
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
- Regarding Appointment of auditor in case of casual vacancy
- GST- DRC 03 RCM Liability
- Conversion of Proprietorship Firm to Partnership Firm
- Validity of form 15 G and 15 H on Interest on fixed deposit
- Query on managerial remuneration u/s 197 of CA 2013
- Supply to unit situated in SEZ
- Threshold limit of under GST for insurance agent
- GSTR 1- Amend Credit Note
- Updated return filing
- International transfer pricing- -> father entity vs son entity ->WHERE NO mutual say in management
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
- Registered Required in GST Act
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
