A firm pays tax. Under which head it has to be created? Shall it be under the head current asset? Is it ok if i create it as income tax paid under the head current asset?
SUBHASHINI (Student) (202 Points)
18 November 2009A firm pays tax. Under which head it has to be created? Shall it be under the head current asset? Is it ok if i create it as income tax paid under the head current asset?
Ashish Ojha
(Chartered Accountant)
(469 Points)
Replied 18 November 2009
First, a liabilty for tax is created.... if u pay more than this or pay advance tax, then it is a current asset. it will be shown with other current assets in the balance sheet
ca tarun sharma
(SERVICE)
(277 Points)
Replied 19 November 2009
in case of partnership firm if advance tax is paid it should be shown u/h CA or Loans & advances & in next year or after assessment net tax payable or paid including advance tax should be tfd to p/l a/c or debited to partners capital a/c in P.S.R & if there is refund it also should be shown under same head as above mentioned
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