Dear Sirs,
1) What should be the presenation/ treatment of the advance income tax payments done while closing the balance sheet at the end of a financial year?
2) Can we on our own null off the advance tax paid against the provision made for the taxes for the said financial year?
Looking forward to the suggestions.
Thanks & Regards.
No.It Should Not Adjust in Same Yr.
Only After Assessment Complete or Period Complete.........
and It Should Be shown Under Current Asset as Advance IT paid For A.Y................
| Originally posted by : AYUSH AGRAWAL | ||
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No.It Should Not Adjust in Same Yr. Only After Assessment Complete or Period Complete......... and It Should Be shown Under Current Asset as Advance IT paid For A.Y................ |
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As above said by Ayush ji, i don't agree with you as if you pay Advance IT for 2011-12, its a transaction happend in F.Y.2010-11 and so it can be claimed as an Expenditure like INCOME TAX A/c (in indirect expenses group) and can claim your tax adjustment at the time of assessment of your tax return at the end of F.Y.2010-11 ie., in the year 2011.
| Originally posted by : k n v v s k sri kanth | ||
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Originally posted by : AYUSH AGRAWAL No.It Should Not Adjust in Same Yr. Only After Assessment Complete or Period Complete......... and It Should Be shown Under Current Asset as Advance IT paid For A.Y................ As above said by Ayush ji, i don't agree with you as if you pay Advance IT for 2011-12, its a transaction happend in F.Y.2010-11 and so it can be claimed as an Expenditure like INCOME TAX A/c (in indirect expenses group) and can claim your tax adjustment at the time of assessment of your tax return at the end of F.Y.2010-11 ie., in the year 2011. |
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Dear Sri Kanth.
I Can't Understand.
What U Said.....
Please Eloborate.
As U Said That Advance Tax Paid Can Be taken as Expenses in PL...
NO.ADVANCE TAX PAID DURING THE CURRENT YR 2009-10 CANNOT BE ADJUSTED IN THE BOOKS OF THE YR 2009-10.IT SHOULD BE SHOWN ONLY AS ADVANCE TAX PAID UNDER CURRENT ASSETS.LATER WHEN ASSESSMENT IS MADE YOU CAN ADJUST THE ADVANCE TAX PAID WITH THE SELF ASSESSMENT TAX PAYABLE
Dear Friends,
We can adjust advance tax paid against current year provision for self assessment tax. Because we are admitting our tax liability as the amount of self assessment tax. So we can adjust the advance tax against that. If any excess we can shown it under current asset.
With regards,
Sreekumar.N
it's just so simple
advance will be shown in current assets under loan and advances
provision willbe shown as a deduction from P&L A/c
and in the next year you will write off Provision for tax from advance tax paid
you can never write off C.Y provision for taxation from advance tax paid
suppose PFT is 80000 and advance tax paid is Rs 95000 as per your view if i write off current year provision for tax that 80000 from advance tax 85000 .advance tax will show a debit balnce of Rs 5000
but if your priciple ask you to show the challan of Rs 5000 advance tax paid then you eiill not be able to show because it does not exist .
Please do not do Netting for your convenience
CA is all about presentation . making B.S is not a great deal
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