Dear Colleagues,
I would like to pass an accounting entry for creation of provision for income tax as on 31-03-208 based on the below data :
1. Income Tax (computed) before TDS = Rs. 100,000
2. MAT Payable (computed) before TDS = Rs. 150,000
3. TDS Receivable = Rs. 20,000
4. Interest u/s 234A/B/C = Rs. 1,000
As per my view, the accounting entry should go like this:
Debit : MAT Credit Entitlement A/c ...Rs. 50,000
Debit : Income Tax Expense A/c ...Rs. 100,000
Debit : Interest Expense A/c ...Rs. 1,000
Credit : TDS Receivable A/c ... Rs. 20,000
Credit : Provision for Taxation A/c ... Rs. 131,000
Kindly correct if I am wrong somewhere.
Thanks and Regards,
Dhrunil Bhatt
CAclubindia
