Good Morning Everyone,
hope all doing well
My qurery is : "what will be the tax treatment , when we get advance payment from our debtor and billing done on next financial year".
will it included in turnover or else.
Advance received shall be treated as income only in the year in which it is recognized. In our case, advance shall form part of turnover only in the year in which actual billing is done. This is irrespective of the fact that you follow a cash system or a mercantile system of accounting.
T R SOOD & CO
New Delhi
CA Inter
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SMJ global advisors pvt ltd
New Delhi
B.Com
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SSGS and Associates
Chennai
CA Inter
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O P Bagla & Co LLP
New Delhi
CA Inter
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CAclubindia
