Journel entry

This query is : Resolved

Report Abuse Follow Query Ask a Query

Rahul kumar

Rahul kumar (Querist)
Follow

10 April 2012 what entries of income tax passed by a company.

CA Kishore Tallam

CA Kishore Tallam (Expert)
Follow

10 April 2012 Current tax A/c Dr
To Provision for Income Tax A/c
If the tax liability is by MAT, then
Current Tax A/c Dr
To Provision for Income tax A/c

MAT Entitlement credit A/c Dr
To Profit and Loss A/c (by deduction from current tax)
Clearance of liability:
Provision for tax A/c Dr
To Bank A/c or
To MAT Entitlement Credit A/c (If paid by utlisation of MAT Credit).