Journal entry for profession tax late filing penalty

This query is : Resolved

Vikram (Querist)
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10 September 2014 For a private limited company, while filing Profession tax returns (maharasthra), a Rs.1000/- late return filing fee was paid. So what will be the journal entry for the same and will it be consider as Indirect expenses?

Also the PTEC of Rs.2,500/- paid for Profession tax will be an indirect expense allowed to be deductable from profit and loss?

Ganeshbabu K

Ganeshbabu K (Expert)
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10 September 2014 Yes.Professional tax renewal will be allowed as expence.

Penalty paid was disallowed and required to disclose in Form 3CD also
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Dr.Rates &Taxes 2500
Dr.Penalty
Cr.Bank