Accounting Entry for DRC 03
You should pass entry under Indirect Tax paid head in indirect exp
yes you can also claim as business exp, it's allowed under Income Tax
hello sir
SIR GST DRC ENTY IN TALLY KINDLY CONFIRM
Entries and tax treatment:
• Reversal of excess ITC paid through DRC-03:
– Dr "GST ITC Reversed – FY 2017-18" (P&L, Rates & Taxes or prior-period item), Cr Electronic Cash Ledger/Bank.
– If the ITC was originally credited to the purchase or expense cost, the reversed tax is effectively a cost now.
– Show interest separately (Dr Interest on GST, Cr Bank). Show penalty, if any, separately (Dr Penalty, Cr Bank).
• Income-tax:
– Reversed ITC (tax): deductible as business expenditure (Sec 37(1)) and allowable on payment (Sec 43B).
– Interest on delayed GST: compensatory, so generally allowed.
– Penalty: disallowed (Explanation 1 to Sec 37(1)).
• Prior-period: if material, disclose under AS 5 / Ind AS 8. It does not affect the year of deduction for tax (year of payment under 43B).
• In tax audit (Form 3CD), report it in the clause for prior-period items and in the clause for amounts debited in respect of penalty or fine, if any.
Recent Topics :
- Bill-to-ship-to material at client site, project c
- Export previously now to be considered domestic sa
- Pan surrender via online
- EPFO Portal Issue – Unable to Save Employee
- Plant & Machinary
- ITC reversal after supplier amended the recipient
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
Related Topics :
CAclubindia
