urgent query regarding accounting treatment

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Are interest on FBT & Interest on Income Tax refund below the line items??

Replies (11)

means u have recived interest on refund

no they can not be below the line itmes......

No, any item shown below the line must be an aapropriation out of current period earnings.

The recipts are earnings in themselves & not an appropriation.

I have paid Interest on FBT & received interest on IT refund..

interest on refund is income from other source hence would be taxable and intt on fbt is penalty hence would be disalowed.

Vinita,

Irrespective of whether it is a charge or a credit to P&L, the character of the transaction in so far as whether it is an appropriation or not doesnot change.

Both Income from Interest on Refund & Interest paid on FBT would be shown above the line.

Interest on FBT paid & Interest received on IT Refund cannot come below the line

Originally posted by : vinita

Are interest on FBT & Interest on Income Tax refund below the line items??

No.Interest on income tax refund is taxable under IOS and interest on fbt is like a penalty.Hence it is disallowed.

I agree with CA Navin Jain

INTEREST ON IT REFUND IS AN INCOME FROM OTHER SOURCES & INTERST ON F.B.T  IS A PENALTY  IS DISALLOWED.

Originally posted by : vinita

Are interest on FBT & Interest on Income Tax refund below the line items??

 Dear all,

I am working in a media channel in Mumbai & appearing for IPCC too....

I want to what are the essential things have to present in invoice when making Journal entry of Input Service Invoice.

Actullaly I have to enter one bill for food provided to our office employee while they were on tour.

But the bill produce by our employess includes Service tax amt also but without Service tax reg. no. of that food provider.

Can anyone help me what to do in such case....wht document should I ask from that food provider to enter the same journal entry ....

pls help me in this case.....or kindly sent me any guidlines in relation to passing JV for Service tax and assentials things require for the same...

my id is nitin_7107 @ rediffmail.com

  


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