Querry
This query is : Open
ADVOCATE NUSRAT
(Querist)
08 February 2016
firm paid penalty of Rs.85000 for F.Y 2014/15 On 27/05/2015 which is imposed u/s 143,
how can i make the entry in tally,as the accounts are maintained for F.Y 2015-16?
how can i make the entry in tally,as the accounts are maintained for F.Y 2015-16?
Ganeshbabu K
(Expert)
08 February 2016
Dr.Prior period expences (Exp)
Cr.Bank
(Penalty paid for F.Y.2014-15 as imposed u/s 143
Cr.Bank
(Penalty paid for F.Y.2014-15 as imposed u/s 143
ADVOCATE NUSRAT
(Querist)
08 February 2016
CAN WE CLAIM PRIOR PERIOD EXPENCES IN CURRENT FINANCIAL YEAR IS IT ALLOWED UNDER ACT
ADVOCATE NUSRAT
(Querist)
08 February 2016
AND UNDER WHICH HEAD I HAVE TO CREATE LEDGER FOR THIS
08 February 2016
1. It is not a prior period item. AS 5 defines prior period item as income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods.
2. Demand/ penalty imposed is not covered by the above definition. Accordingly it is not prior period item
3. Open a new ledger "Income Tax Penalty" under indirect expenses. You can have any other name also.
4. Penalty paid under Income Tax Act is not admissible as deduction under the Income-tax Act.
2. Demand/ penalty imposed is not covered by the above definition. Accordingly it is not prior period item
3. Open a new ledger "Income Tax Penalty" under indirect expenses. You can have any other name also.
4. Penalty paid under Income Tax Act is not admissible as deduction under the Income-tax Act.
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ADVOCATE NUSRAT
(Querist)
12 February 2016
if penalty paid is not admissable so why i claim it as indirect expences, now i debit the penalty from capital account and cr cash is it corect ???????
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