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Advance payment
is advanced payment of tax shown on liability side of balance sheet?
Replies (7)
No assets side, as you have the right to adjust it against your actual tax liability.
moreover whatever is already paid cannot be shown as a liability ,as liability is a obligation that is yet to be paid.
moreover whatever is already paid cannot be shown as a liability ,as liability is a obligation that is yet to be paid.
1. Whatever the amount paid as the advance tax will be shown under Current Assets.
2. It will not be a liability. Once the tax liability arises, advance tax needs to be set it off with final tax liability.
Please correct me if the above solution has an alternative view.
UNDER SCHEDULE III OF COMPANIES ACT 2013
ADVANCE TAX IS SHOWN UNDER CURRENT ASSET.....
ADVANCE TAX IS SHOWN UNDER CURRENT ASSET.....
@ Savitri Gupta
Please specify - are you having a proprietory concern or other category ?
Please specify - are you having a proprietory concern or other category ?
Its for examination purpose.thank you for the response
@ kapadia the entries remain same.
disclosure also remains .
nature of business changes the disclosure pattern.
disclosure also remains .
nature of business changes the disclosure pattern.
@ Savitri
You are a student Great
From examination point of view , follow guidelines issued by ICAI. Now as per Companies Act , there is vertical balance sheet.
Current liabilities are deducted from current assets. Net is arrived at. Show Adv Tax under current assets or adjust it against provision for tax of guidelines allow
You are a student Great
From examination point of view , follow guidelines issued by ICAI. Now as per Companies Act , there is vertical balance sheet.
Current liabilities are deducted from current assets. Net is arrived at. Show Adv Tax under current assets or adjust it against provision for tax of guidelines allow
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