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Tax and expenses

Others 487 views 4 replies

can you pls advise on below
we had executed civil work in year 22-23 and part of the work was completed during that year and balance work was completed in year 23-24 and we got the full payment  in 23-24
now from point of accounting and tax purpose how this will be taxes ( income tax) will i have to pay tax in 23-24 as well in 22-23 and how the expenses for this work to be considered foR taxation purpose

Replies (4)

Assed tax method for that year.

Revenue recorded as per construction contracts

There are two method cost plus contract and margin

HI SABYASCAHI CAN YOU PLS ELOBRATE 

LETS SAY TOTAL CONTRACT  6 LACS AND WORK EXCEUTED IN 22-23  RS 5 LACS AND BALANCE WORK COMPLETS IN 23-24 

TRY STAGE OF COMPLETION = COSTS TO DATE/TOTAL COSTS*100 (REVENUE, COS X %)

DR CONTRACT ACCOUNT

CR PAYABLES

DR CONTRACT ACCOUNT

CR REVENUES

DR COST OF SALES

CR CONTRACT ACCOUNT

 


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