very very urgent

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This query is : Resolved

manik (Querist)

03 May 2011 ours is a construction company, we had made a provision for taxation for rs.315000 as on 31.03.10, there stands a dr. balance of tds deducted by client of rs.750000, the tax liability is rs.198000 and net refundable amt is rs.552000, how to do the adjusting entries, pls tel

CA Navin Jain

CA Navin Jain (Expert)

03 May 2011 IF TAX LIABILITY IS RS 198000, WHY PROVISION HAS MADE FOR RS. 315000

manik

manik (Querist)

03 May 2011 the provision was made as per book profit and tax liability is after income tax adjustment, how should all the three a/c provision for taxation, tds receivable and tax liabilty to be adjusted

CA Navin Jain

CA Navin Jain (Expert)

03 May 2011 FOLLOWING ENTRY TO BE MADE

PROVISION OF INCOME TAX - DR- RS. 117000
TO DEFERRED TAX LIABILITY -117000

PROVISION OF INCOME TAX - DR- RS. 198000
INCOME TAX REFUNDABLE - DR - RS. 552000
TO TDS RECEIVABLE - 750000

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