Vat

TAX ACCOUNTING

The following is the manner in which tax is accounted in the books.

First whatever the amount paid as advance tax must be debited to ADVANCE TAX A.C (Prev. Year)

Secondly the TDS and TCS receivable shall also be transferred to this ADVANCE TAX A.C on receipt of the certificate from the respective parties.

Thirdly the tax liability is calculated and a provision is created to that extent under Income TAX PAYABLE A.C (Prev. Year)

When the assessment is complete the tax payable ac and the advance tax ac is set off as per the Assessment Order.