To people who called others "experts" ^^
thank you so much, @ Manish
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Employee's contribution received by the employer
Thank You for the attending this query Mr Manish...
| Originally posted by : Kashish Jain | ||
 |
To people who called others "experts" ^^thank you so much, @ Manish |  |
Thanks...
But, Not like this...
Dear Mr. Manish.,
No more doubts in my side...
I want a small accountability...
What about employee's contribution under Employer's books of accounts...?
It's income or Liability....?
A liability.
It is income only under income tax law.
Perfectly answered Manish....
What I want to said you explained properly with example....
What I want to said you explained properly with example....
Thank you Rashmi Ji
Make first entry..... SALARY A/C DR....... TO BAnk A/c.... To employee contribution towards PF A/C...... To Employers contribution towards PF A/c..
Second entry is..... Employees contribution towards PF A/C DR..... Employers contribution A/C DR..... Administration charges A/C DR...... To Bank ACCOUNT
At the balance sheet date PF contribution which is unpaid shown as current liability in ur balance sheet..... By doing this u book all ur employees obligation benefits as an expense
And when u make payment before return filing due date u get deduction for that.... Under section 43B.... Certain expenses deduction on payment basis
Hlw Manish sir... Whether in ur example salary of Rs. 1 lakh include na Rs. 12000 of employees contribution..... Only then that example is correct.... As employees contribution towards pf also employees benefit obligations expenses..... I mean employee get only net amount Rs. 88000 and Rs. 12000 deposit to Fund.... While salary expenses is Rs. 1 lakh plus 12 k employers contribution...
That's why employee contribution first added in employers income and after that he get deduction for that payment..... And no effect... Bcz he already claimed that as a salary expenses
Employees doesn't contribute from his own pocket.... Its salary amount from employer deducted that and deposit that amount to fund.... So its employer expenses.... Hope all agrees with my points.... And hope query also resolved Raja sir
| Originally posted by : Divakar | ||
|
Hlw Manish sir... Whether in ur example salary of Rs. 1 lakh include na Rs. 12000 of employees contribution..... Only then that example is correct.... As employees contribution towards pf also employees benefit obligations expenses..... I mean employee get only net amount Rs. 88000 and Rs. 12000 deposit to Fund.... While salary expenses is Rs. 1 lakh plus 12 k employers contribution... | |
Definitely, Divakar Ji.
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