Provision for income tax in case of advance tax paid and tds

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PRASHANT SHARMA (Querist)
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05 September 2013 PROVISION FOR INCOME TAX

FACT OF THE CASE
ABC PRIVATE LIMTED
FOR A.Y. 2013-14
TOTAL INCOME :- 1416390
TAX PAYABLE (Incl. Int. u/s 234) :- 462500

TDS :- 11500
ADVANCE TAX PAID:- 300000
SELF ASSESSMENT TAX PAID (28/08/2013):- 151000

My question is :-
Whether I have to make provision for Income Tax of Rs. 1,51,000/- (As this amount is only payable as on 31.03.2013) after taking concern of TDS RECOVERABLE & ADVANCE TAX PAID ?
OR
WHETHER PROVISION FOR INCOME TAX OF RS. 462500 (ie., Total Tax Payable for Current Year) is to be made and Reversed Entry is to be passed on next year?
Please Clarify calculating “PROVISION FOR INCOME TAX” in case of TDS RECOVERABLE and ADVANCE TAX PAID.
Is PROVISION FOR INCOME TAX IS CALCULATED AFTER DEDUCTING TDS RECOVERABLE?

Ganeshbabu K

Ganeshbabu K (Expert)
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06 September 2013 Provision for current year is to be made for full tax payable

At 31.03.2013

Dr.P&L A/c 462500
Cr.Provision for current year tax 462500

(Being provision provided for current year )

Above entry creates a provision and it will knocked down next year with Current asset accounts available and related to income tax

in next year entry will be

Dr.Provision for current year 462500
Cr.TDS receivable F.Y.12-13 11500
Cr.Advance tax 300000
Cr.Self Assessment tax 151000

(Hope you aware on how to pass entry for tds receiavables and advancetax paid and self assessment tax)

PRASHANT SHARMA

PRASHANT SHARMA (Querist)
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06 September 2013 Thank u sir, for your prompt reply.
It means Provision for Income Tax is always made equal to Full Tax Payable Amount.(i.e., TOTAL CURRENT TAX).