pls can any body suggest me the logical sequential journal entries for Advance Tax , Provision of Tax( pls also suggest me when these entries will be passed like Advance Tax , Provision for tax in the books)
ravi (senior accountant) (507 Points)
09 February 2011pls can any body suggest me the logical sequential journal entries for Advance Tax , Provision of Tax( pls also suggest me when these entries will be passed like Advance Tax , Provision for tax in the books)
CA. MANAL CHAWLA
(CA + CS Professional)
(566 Points)
Replied 09 February 2011
Journal Enteries
When You Paid Advance Tax
Advance Tax Paid _ _ _ _ Dr.
To Cash_ _ _ _ _ _ _ _ _ _ _ _ _
(For Payment of Advance Tax)
When Provision Made for Tax
P & L A/c _ _ _ _ _ _ _ _ Dr.
To Provision For Tax _ _ _ _
When Liability Calculated
then
Provision for Tax _ _ _ _ _Dr.
To Advance Tax Paid_ _ _ _ _
jacob
(India)
(23 Points)
Replied 09 February 2011
Hi,
Provision for income tax refers to the line item in the profit and loss statement. Income tax is a broad term and could mean current taxes (taxes actually payable to Government), Tax expenses/provision for tax- taxes reported in the P&L or deferred taxes (difference between current taxes and tax expense).
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