Accounting Treatment of Tax paid (advance tax) towards H Ren

Avtar Singh (Accountant) (23 Points)

24 May 2008  


Ours is a company in Market Investment Consultancy. We have an employee to whom we are paying HRA and making payment of rent on his behalf to his landlord. We are deducting this amount from his salary and paying an advance tax on the amount of house lease. What would be the accounting treatment of this transaction. Please advise.