EXCESS OF ITC PAID SHOW BE TREATED LIKE EXPENSES WILL IT SHOW IN P&L STATEMENT?

ITC is balance sheet figure ... so it not shown in P&L statement.. is it correct..?

Replies (10)
Quick Summary
This discussion clarifies that excess Input Tax Credit (ITC) is a balance sheet figure and should be shown as a current asset, typically under 'Balance with Revenue Authority'. While the payment of tax itself can be reflected in the P&L statement, any remaining ITC balance after offsetting tax liabilities does not affect the P&L. Instead, it's carried forward as a current asset.

Yes , It is correct .
Excess amount paid after setoff itc can I can show in P&L STATEMENT?
No , Excess balance ( ITC ) remain after set off tax liability if any , You have to show in Current Asset , Balance sheet ,as '" Balance with Revenue Authority A/c "
Input. 1000
output 1200
tax paid 200
that 200can I show in p&l statement?
Yes , Payment of tax you can show in P&L .

But if
Out put 1000
input 1200
then balance 200 /- ITC you have to show as current asset ,
Payment of tax is P&L figure
Input tax credit is Balance sheet figure .
Balance tax amount will be paid through cash.. then P&L STATEMENT will not effect only balance will be paid effect.. in duties and taxes
Actually. ITC is always debit balance and should be shown under current assets , however for our convince , we are showing Input Tax credit under Duties and Taxes , because out put tax less ITC will get net tax payable in balance sheet only .

so I pass entry

Out put tax A/c Dr 1200
To Input tax A/c Cr. 1000
To Tax payable A/c Cr 200
now you tell under which head you are going show Tax payable ?. like
Out tax under Duties and Taxes
Input tax under Duties and Taxes .
Taxable payable under indirect expenses
Correct Dear , so tax payable in P&L and ITC in Balance sheet .

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details