22 October 2012
TDS and advance tax has to be set off against current year's tax provision and if the balance is debit, please show under'Long term loans and advances'.
22 October 2012
My question was if TDS and Advance tax is set off against current year's income tax provision and only net balance is shown in balance sheet (revised),then why advance tax is shown in balance sheet under long/short term loans and advances?
23 October 2012
Items the benefit of which can be realized within the operating cycle of the business (normally 12 months) can only be classified under "Current" Assets - everything else should be grouped under "Long-term" Assets. It is unlikely that assessment of any year would get completed within 12 months from Balance Sheet date, this is the reason that Advance Tax or TDS refundable is shown under "Long-term" items. Only amounts relevan to orders already passed may be shown under "Current" Items - these are the recommendations of the ICAI also - refer FAQ No. 31.
CAclubindia
