Prior year tax adjustment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2011 There is a company who's audit report finalization is being done by me. The company's balance sheet for AY 2010-11 shows Advance Tax for AY 2007-08, 08-09 and 09-10. The company paid self assessment tax for AY 2009-10 of Rs. 10,000/- in AY 2011-12 and the advance tax net liability was Rs. 1.2 lacs.

I was advised to show Rs. 1.2 lacs minus Rs. 10,000/- which is Rs. 1.1 lacs as prior year tax adjusted and the Rs.10,000 paid to be adjusted against Rs.1.2 lacs i.e. provision less advance tax less paid towards liabilities which is equal to prior year tax adjusted.

Is the tax treatment right? plz reply.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

24 September 2011 Adjust advance tax against the provision as well as the actual payments made so that the same stands to Zero and if refundable then it will appear as receivable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Jeegar Valera

Tia Blair

Sabareesan S Venkatesh

kambamcr@gmail.com

Nithish Kothari

Subscribe Now

Prior year tax adjustment

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Manager- Finance and Compliance

Accountant

Article Assistant

GST CONSULTANCY

CA Final