01 April 2010
we are a construction company, we paid 50,000/- service tax in march'2010 the year (2009-2010)which was pending for the year(2008-2009). now the problem is we never made any o/s entry in 08-09 for tax. since now tax is paid for last year,wat entry or treatment should i give it in my books of accounts for book keeping. as last year books are already closed & audited.
01 April 2010
Open an "Expense Relating to previous Year A/c" and debit the amount to this account.This will not be a charge to your current year's revenue but an appropriation and will have to be shown "Below the Line" in the P & L A/c for the year.
01 April 2010
ya right but in that case how will i take the ceredit of this expense in this current year.. as per 43B it can be taken as a actual payment basis so i can take it as current year expense? in that case what will be the entry?
CAclubindia
