01 March 2013
Dear All, A private ltd. co. has been scrutinized by AO for the year 10-11 and disallowed advertisement exp Rs. 5 lacs due to not making the provision of TDS. and now in march 13 the tax on such disallowed expense has been paid this year. now , how to make the accounting entries in this year? please give the full accounting entries. whether that expenditure will be considered as prior period items?
01 March 2013
Yes disallowed.......but you can charge it in your books as expenditure and while computing income tax provision of current year do not consider this expenditure
01 March 2013
but in year which it was disallowed by AO the net profit would have increased in that year. so what and how will be carry such differential profit in the current year? please specify the entry for the current year.