Hi,
I am working for a Us Client which has subsidary in Cayman, Australia and New Zealand, i recently came across the transaction which does not seems to me right, The transaction is we receives interest on Bank deposit and 25% withholding tax deducted on it, As per my understanding the accounting should be Recognize intrest income by full amount and show WT as receivable in books and claim the tax paid/withheld while paying the final income tax, But we are not following like this, we are booking interest income as Income- WT, Could somebody please help me in this regards if possible plz suggest some reference material to read in IFRS.
Menu
With holding Tax on Interest income
Replies (2)
I guess Second Entry would be
Bank a/c Dr..750
WT intrest Dr. 250
To Intrest A/c 1000
Bank a/c Dr..750
WT intrest Dr. 250
To Intrest A/c 1000
Yes , You can pass single entry only as above .
Bank A/c Dr 7500/-
WT on Interest A/c Dr 250/-
To Interest Received A/c Cr 1000/-
( Interest received after WT deduction @ 25%} .
Show WT on Interest A/c under Asset side Balance sheet .
Recent Topic
- TDS related matter - 194 IA
- Research: How do CA firms handle GSTR-2B reconcili
- CA FINAL FR IndAS 33 Illustrtion 14
- Taxation on Sale of old Jewellery Received at Marr
- ITR-3 Filling issues
- PF withdrawal and tax liability
- Sale of Goods or Services?
- ITR form query
- Credit against paud RCM on rent
- Dividend difference in 26AS, AIS, TIS
Related Topics
CAclubindia
