Treatment of Year end provision for expenses
This query is : Open
05 June 2009
As provisions are made on estimated basis they are not accurate. I want to know whether the year end provision is to be reversed in the next year or the bills are to booked against them.
Also as TDS is also applicable on provisions then how to make their payment.
Also as TDS is also applicable on provisions then how to make their payment.
09 June 2009
They are only on the estimated basis more or less.
But the accruals should be not less in the amount.
the bills to be booked against them are traditional ways i.e if there is amount of accruals are less. either best way is to reverse whole accruals in the next month.
accruals may be for operating expenses or direct expenses. operating expenses accruals can be directly cancelled with the bills
But the accruals should be not less in the amount.
the bills to be booked against them are traditional ways i.e if there is amount of accruals are less. either best way is to reverse whole accruals in the next month.
accruals may be for operating expenses or direct expenses. operating expenses accruals can be directly cancelled with the bills
11 June 2009
Thanks, for the solution but what about the TDS treatment which were deducted and deposited on Provisions.
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