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Provisional balance sheet

Suraj Agarwal (Self Practitioner in Income Tax & GST)     03 May 2014

Suraj Agarwal
Self Practitioner in Income Tax & GST 
 47 likes  781 points

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Hello Friends,

Plz tell me that

In a private limited company, while making its provisional balance sheet as on mid of the year, whether provision for tax is created for the current year or not ?? OR net profit will be left without taxation.

Plz help me. Its urgent.


Rama chary Rachakonda

Rama chary Rachakonda (Master in Accounts & Lawyer email voice no:9989324294)     03 May 2014

Rama chary Rachakonda
Master in Accounts & Lawyer email voice no:9989324294 
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provision for taxation is must but it must be shown with proportion for the mid.year.
CA. Kapil Goel, DISA(ICAI)

CA. Kapil Goel, DISA(ICAI) (     06 May 2014

CA. Kapil Goel, DISA(ICAI) 
 96 likes  2166 points

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Yes, Proportionate tax on estimated income will be made.



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As per profit you should calculate the tax and make a provision for tax in the balance sheet.

V P Narasimhan

V P Narasimhan (Accounts Manager)     20 May 2014

V P Narasimhan
Accounts Manager 
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The followoing methods can be adopted. 1) If the company has a budget in the beginning of the year based on Budget - Profit estimation Advance Tax/Provision can be made.2) If the Co. does n't hv budget find out the Gross Sales in the mid Year  & arrived at the expected Closing Sales Vs Closing Expenses then derive the Expected Profit and anlayse for Tax Provision, Of course it will be + or - which will not going toaffect much at the year end.

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