For provisions
This query is : Resolved
22 March 2016
Provisions made in books of accounts. This is allowable in income tax OR not.
22 March 2016
Yes Provision is allowable as deduction , consider deffered tax also in calculation.
22 March 2016
sir, if provision is allowed in income tax. why we apply AS-22. I don't understand the logic.
22 March 2016
Accounting is different thing & Income Tax is also different. In Accounting if you deem feet for any machine you can provide 50% Dep. also but as per Income Tax Act only 15% will be allowed as Dep. so Accounts & Income Tax both are different & Some time contradictory as well.
22 March 2016
sir, when we take classes of accounts then teacher say that provision also disallowed in income tax and the provision is also timing difference so we apply AS-22, for e.g. provision for bad and doubtful debt. this is correct or not?
22 March 2016
https://www.caclubindia.com/articles/bad-debts-provisions-of-bad-debts-15545.asp
I Want to ask one question , Do u know What is Provision ?? Tell me so i can further do clarify, because it all depends on meaning what u know abt provison.
I Want to ask one question , Do u know What is Provision ?? Tell me so i can further do clarify, because it all depends on meaning what u know abt provison.
22 March 2016
sir, provision mean explain through an example- salary of month of march due in march but payble in april month. so we make provision for salary of month of march in march
(Entity has present obligation as a result of past events, and probable outflows of resources to settle the obligation)
(Entity has present obligation as a result of past events, and probable outflows of resources to settle the obligation)
22 March 2016
Its depend upon provision to provision
Because there are certain provisions are disallowed in income tax like provision for doubtful debts .
While provision for salary payable is allowed in income tax.
Because there are certain provisions are disallowed in income tax like provision for doubtful debts .
While provision for salary payable is allowed in income tax.
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23 March 2016
Thank u sir, for clear my doubt.
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