Menu
Excess provision written back
Excess provision for gst payable created in the books in last year, if it is written back in current year is any income tax liability? this is taxable if the gst is not passed through P&L (exclusive method as per section 145A)
Replies (1)
Writing back an excess provision is generally taxable as business income if that provision was previously claimed as a tax-deductible expense (under Section 41(1) of the Income Tax Act). If the provision was never allowed as a deduction, it may not be taxable upon reversal. Please verify your historical tax filings to see if the original provision was allowed as a deduction.
Recent Topics :
- Capital Gain on sale of Depreciated Factory Gala
- Interesting Observation from a Recent Income Tax S
- ITR 3 Utility Not Taking Marginal Relief on Net To
- MV Electrosystems IPO Allotment Date, Status Check
- TDS payment code query
- Query on FLAIR return
- Itr 4 problem
- Capital Gains Mismatch Due to Sale Agreement in FY
- REGARDING NRO INVESTMENT IN SHARES OF DOMESTIC COM
- DTAA benefits
Related Topics :
CAclubindia
