Tax paid by firm how to account
This query is : Resolved
ABDUL VAJEED
(Querist)
11 July 2012
Hi All,
When a firm pays tax which has two partners then can i show tax paid as drawings ? i e 50:50 tax can be shown as drawings under both partner's drawings a/c
Or should i create prov for taxation a/c ?
When a firm pays tax which has two partners then can i show tax paid as drawings ? i e 50:50 tax can be shown as drawings under both partner's drawings a/c
Or should i create prov for taxation a/c ?
11 July 2012
Tax liability of the firm is different from the tax liability of the partners.
You have to create provision for taxation. If the tax has been paid as advance tax record the same as advance tax in the books of the firm.
You have to create provision for taxation. If the tax has been paid as advance tax record the same as advance tax in the books of the firm.
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ABDUL VAJEED
(Querist)
12 July 2012
Thanx
But i heard that only for companies we can create Prov for taxation and not for others
Is that true ?
But i heard that only for companies we can create Prov for taxation and not for others
Is that true ?
13 July 2012
That is not true. Although provision for taxation is disallowed for Income Tax purpose.
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ABDUL VAJEED
(Querist)
16 July 2012
Thanxxxxxxxxxxxx a lot
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