Sir what willbe the entry of advance tax? And wat is the entry of sett of it against provison for taxation? And if advance is excess paid what will be treatment with advance tax\? Please answer me in detils?
2 Replies
CA Bada Sanjay Kumar Reddy
(CA)
(69 Points)
Replied 17 September 2011
you have adjust advance tax against provision for tax
CA RICHA BADALIA
(CA,CS)
(1682 Points)
Replied 17 September 2011
hi..
when you pay advance tax accounting entry is:-
Advance taxA/C Dr
To Bank
At the time of finalisation of account provision for taxation is created by passing following entry :-
P/L A/c Dr
To PFT
Advance tax paid earlier will then be adjusted against this provision by following entry :-
PFT A/c Dr
To Advance Tax
And if advance tax is excess paid it will stay in BS under the heading Current asset Loans & Advances .You will get refund of excess payment made.
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