23 June 2009
Please let me know what is Provision for Income Tax & Provision for F.B.T ?
NOW i am paying F.B.T (ON 23.06.2009) for the Q.E March 2009 with interest for delayed payment So what would be the entries in A/cs for the F.Y 2008-09 & F.Y 2009-10 both as the Balance sheet for the F.Y 2008-09 is not been finalized
Provision for Income tax/FBT is the amount of current tax that would be payable by the assessee on the basis of income tax provisions.
As Far as entries are concerned you take note of the following: - 01. Self Assessment Tax A/c ........... Dr. Interest A/c .......................Dr. To Bank Account 02. Profit & Loss A/c ................. Dr. To Provisions for I.Tax/FBT 03. when the assessment being done in the next finanacial year pass the entry: -
Provisions for I.Tax/FBT........... Dr. To Self assessment Tax any difference will be accounted for in the books of accounts through P & L A/c only
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