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Accointing of provisions

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Sandip More

17 Points Joined September 2018

The Company has done provision of Rs. 50 Lakhs in F.Y. 2017-18, but failed to do reverse entry of the provision of 50 lakhs in F.Y. 2018-19. The Company has paid the said amount in F.Y.2018-19 and again debited to P&L on payment basis.

Financial reports were already submitted with ROC and Income Tax return by the company.

Questions

1. Can company do the reverse entry in F.Y. 2019-20?

2. What will the effect to the Income Tax for year 2018-19 & 2019-20?

Solutions in deep require

Please explain

Thanks & Regards

Replies (1)

Mayur Patil

Article

1276 Points Joined October 2018

Detailed information required.... like total accounting fees in 17-18 and 18-19.....

if you have not made any provision in the fy 18-19......then we can say like..... 50L we paid against provision of 17-18 and in 18-19 we made new provision for accounting fees by same amount ....so mistake will be mitigate.

it's just my opinion if condition remains same as i think.... other opinion highly appreciated......