Payment done in one year

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?

Replies (9)
Quick Summary
This discussion explores when to recognise income for services when payment is received in one financial year but the service is provided in the next. The consensus is that if payment is received in advance, it should be treated as 'advance received from customers' (a current liability) in the year of receipt. The income is then recognised and invoiced in the financial year the service is actually provided.

If sale is done in next yr then income will be automatically go in nxt yr
Income should be shown as earned in which year it is received
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?

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

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.

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?

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.

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

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?

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