provision for gratuity and leave encashment
This query is : Resolved
02 June 2011
how the provision for the gratuity and leave encashment shuold be created in the accounts ??... how it should be adjusted while calculating defferred tax liablity or asset ??...
i am aduiting a public limited company they have adjusted opening balance with current year actual provision is this accounting treatment correct??
i am aduiting a public limited company they have adjusted opening balance with current year actual provision is this accounting treatment correct??
Ca Aashish Upadhyay
(Expert)
02 June 2011
Dear Shirini
The provision for gratuity and leave encashment are allowed only when it is actually paid(refer 43B) so it is a timing difference. Generally what happenes when a company provide for Gratuity of leave encashments it is generally added back while calculating the Income Tax liability and the amount which is actaully paid during the year is allowed.
Kindly drop a mail @ caaashishupadhyay@gmail.com if want further clrifications
The provision for gratuity and leave encashment are allowed only when it is actually paid(refer 43B) so it is a timing difference. Generally what happenes when a company provide for Gratuity of leave encashments it is generally added back while calculating the Income Tax liability and the amount which is actaully paid during the year is allowed.
Kindly drop a mail @ caaashishupadhyay@gmail.com if want further clrifications
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Movement of goods by packers and movers - type of sale - Reg.
- Missed uploading GST Invoice
- Closer of business and itc of capital goods
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- Gratuity paid to legal heir above 20 lakh is taxable or not
- TDS Return Statement Status
- Appointment of Auditor By Form ADT-1
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
