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Payment done in one year

b (na) (56 Points)

09 October 2021

Suppose a payment was received for providing services as, sundry credit in this year. Can this sundry credit be shown as income for next year?

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9 Replies

Abhishek (Chartered Accountant) (149 Points)
Replied 09 October 2021

If sale is done in next yr then income will be automatically go in nxt yr

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 10 October 2021

Income should be shown as earned in which year it is received

b (na) (56 Points)
Replied 10 October 2021

Originally posted by : abhishek
	If sale is done in next yr then income will be automatically go in nxt yr

But the income was credited this year and the service will be provided next year. Will the credit this year be shown as income next year?

Abhishek (Chartered Accountant) (149 Points)
Replied 10 October 2021

Service nxt year m gyi to advance from customer show hoga only

CMA Poornima Madhava (CMA) (13097 Points)
Replied 11 October 2021

If received in advance, then in the year of receipt, it can be shown as advance received from customers (under current liability) and subsequently when the service is provided, invoice can be raised.

b (na) (56 Points)
Replied 12 October 2021

Originally posted by : CMA Poornima Madhava
	If received in advance, then in the year of receipt, it can be shown as advance received from customers (under current liability) and subsequently when the service is provided, invoice can be raised.

Can then the amount received as advance be also shown as an income in next financial year?

b (na) (56 Points)
Replied 12 October 2021

Originally posted by : abhishek
	Service nxt year m gyi to advance from customer show hoga only

Can you please translate this in English as what is written in above quote not understood.

CMA Poornima Madhava (CMA) (13097 Points)
Replied 12 October 2021

Originally posted by : b
	Originally posted by : CMA Poornima Madhava If received in advance, then in the year of receipt, it can be shown as advance received from customers (under current liability) and subsequently when the service is provided, invoice can be raised. Can then the amount received as advance be also shown as an income in next financial year?

Yes, it can be shown

b (na) (56 Points)
Replied 13 October 2021

Originally posted by : CMA Poornima Madhava
	Originally posted by : b Originally posted by : CMA Poornima Madhava If received in advance, then in the year of receipt, it can be shown as advance received from customers (under current liability) and subsequently when the service is provided, invoice can be raised. Can then the amount received as advance be also shown as an income in next financial year? Yes, it can be shown

Can the company show this payment in their Form 16A for this quarter in this year for the Form 16A for the person who is providing the service and getting this payment from company in advance?