Payables has a tax base, it might impact your deferred taxes like give you an asset. So revise it using prior period errors standard, restate all the numbers. Alright, since you paid it in march 21 already in 2021 for the same missing transaction, no need to worry, just put in the payments entry. You have to ask a tax consultant about tax consultant about deferred tax advantage that way. So post it in tax planning section here
I did not quiet get you. You did not pay in March, nor entered the payables transaction but finalised it. Then, you paid that amount in May. Yes you can and confirm that with your auditor because if the deferred tax moment offsets current taxes by any chance, ie reduces current taxes, there might be a problem. For the time being, you have to record that expense.
(Sr . Accountant and GST Practitioner . )
Replied 09 December 2021
what ERP do you use. usually people put everything into transactions and make payments. First you try that and ask your manager to pass a journal to adjust it. All complexity lies with the software
That is great. Can you please check if the the original company records can be modified. If any error message comes up, make
Directors fee a/c
To Payables a/c
To bank a/c
respectively in their respective vouchers. Because after the period end, all the data will be freezing permanently.
LOL Now the right advise would be, leave it off. Nothing must happen because you are paying your taxes in arrears anyways. So what ever harmful effects will be there in the tax movements must become proper because you made a payment entry before this year closing. You did a good job
Mr. Surajit, dont worry, There is no separate deferred tax rate followed in taxation practices in India; therefore, the general corporate tax rate is applicable in the calculation of deferred tax. This is as my personal knowledge and deferred taxes are calculated like below as per our AS standard. Not my way. So just make an entry and leave it off, everything is covered off.
Replied 16 December 2021