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Provision for income tax

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Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2013 Sir

Please explain me treatment of provision tax if its credit in my books, it pvt ltd co.

Thanks & Rgds

Mukesh kumar

@VaibhavJ

@VaibhavJ (Expert)

23 February 2013 Hi,

By tax credit you mean CENVAT credit or TDS.

Thanks!!

Guest

Guest (Expert)

23 February 2013 DEAR,

IN THIS CASE,

EVERY ONE IS FOLLOWING DIFFERENT METHOD,

YOU CAN SET OFF OR YOU CAN SHOW BOTH SIDE:

1. YOU CAN DEDUCT TAX PAYABLE FROM CREDIT AND IN LAST IF STILL TAX IS PAYABLE THEN MAKE CURRENT TAX PROVISION ON LIABILITY SIDE AND IF STILL CREDIT OF TAX IS AVAILABLE THEN SHOW THIS CREDIT AS TAX REFUNDABLE UNDER THE HEAD ADVANCE PAYMENT OF GOVERNMENT DUES.

2. YU CAN SHOW IS ON BOTH SIDE. LIKE YOU CAN MAKE PROVISION OF TAX PAYABLE ON LIBILITY LIKEWISE SHOW IT ON LIABILITY SIDE AND SHOW YOUR TAX CREDIT ON ASSETS SIDE UNDER THE HEAD ADVANCE PAYMENT OF GOVERNMENT DUES.

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