Taxation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2011 How we decide provision for taxation? Please explain the entries and adjustments for advance tax,provision for tax ,Excess provision, and short provision?

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

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

17 March 2012 Good question. Generally this is not dealt by the auditors.
The provision is made on the basis of income and on the same computation is made for making the provision of tax.
Once the provision is made the entry is P & L a/c Dr. and Provision for I.T Cr )Mention the year of assessment). When you pay advance tax you debit the same.
Till assessment is completed you are not aware what will be payable and refundable so your this entry will remain outstanding.
Once the assessment is made the transfer this entry by debiting Provision for Income Tax and credit the Advance Tax. The excess or short is again debited or credited to the Profit & Loss a/c

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

Jayesh Pipalwa

George Innocent

Mukund Thakur

arya yashu

Rajat Khandelwal

Subscribe Now

Taxation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

GST CONSULTANCY

Accountant

GST CONSULTANT

Manager- Finance and Compliance

Article Assistant