Go AD-FREE with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

AS-9

AS 785 views 4 replies

Nitin Kokane

Industrial Trainee

72 Points Joined June 2009

Hi,

Let me know the how to present income in P&L including Service Tax i.e. Gross oncome or Net Income ( As per AS-9)

Replies (4)

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

Income is to be presented in the P & L a/c excluding service tax, i. e. Gross Receipts Rs. 10,000/- Service Tax Rs. 1,030/-, then income in P & L A/c Rs. 10,000/- only.

Income should be disclosed net of service Tax in P/L. i.e. excluding Service tax. U r collecting Service Tax on behalf of Govt. as an agent which u have to pya the Govt. Hence Service tax is not an income for the entity.

Krutesh Patel

ACA

727 Points Joined July 2009

Excluding

RAJESH

PART TIME CONSULTANT

22 Points Joined July 2009

Originally posted by :Nitin Kokane

Hi,

You can show gross receipts in the inner column of Profit & loss and deduct Duties & Taxes from it and show only net amount in Out column.

Acconting of duties & taxes should be as per your accounting policy i.e. Excluding & including method. If you follow including menthod then u can show gross receipts as income and debit taxes paid as expenses.