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Journal entry Account

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chetan singhania

student

71 Points Posted on 31 January 2023

let supposed audit fees provision is to be made for 100000 For FY 2022-23. Now I received an invoice from CA says 150000 including GST amount dated 10th September 2023.

at the time final accounts for 2022-23 how to be record proper journal entry in books and how to claim gst for the invoice received. and how to adjust difference between provion amount and actual invoice amount. On which date and ant tds 194j apply

Replies (3)

Quick Summary

This discussion clarifies how to handle journal entries for audit fees when the actual invoice exceeds the initial provision. It explains that an invoice received in September 2023 for FY 2022-23 should not be backdated. Instead, the correct approach involves recording the provision for audit fees and GST on 31st March, deducting TDS on the fees component. Upon receiving the actual invoice, the provision is reversed, GST input tax credit is claimed, and the difference is adjusted.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 31 January 2023

Take proforma invoice from Auditor without GST and account it accordingly..

This is wrong practice to consider it in 2022-23 FY.

Audit starts only after March and audit work commencement and completion will be in after March .

Hence provision is not required for future work.

If the audit is already started then only provision is required.