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composition -GST

18 June 2018

If in propritiership business propriter take composition scheme than tax paid by him adjust in profit and loss a/c or capital a/c ,if he tax under income under presumptive scheme of income tax.

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4 Replies

CA Sachin Agarwal (Chartered Accountant B.com (Accounting Hons)) (831 Points)
Replied 18 June 2018

Although the tax paid is composition in nature but this doesnt affect the fact that tax is paid solely for the purpose of business.
In my opinion this should be charged to P/L Account rather than charging to Capital Account.

Ravi SADhiyan (Practice) (4510 Points)
Replied 18 June 2018

Originally posted by : SUMIT KARESIA
	If in propritiership business propriter take composition scheme than tax paid by him adjust in profit and loss a/c or capital a/c ,if he tax under income under presumptive scheme of income tax.