Bahubali (Accounts Executive CWA Inter) (452 Points)
10 March 2011hi all
i have doubt about, what the advance tax paid is it consider as excepense while calculating profit plz any one clarify.
thanks in advance.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 March 2011
no , its capital expenditure, not revenue, so no deduction available on incometax payment.
Pankaj Arora
(Learner)
(3134 Points)
Replied 10 March 2011
ADVANCE TAX IS NOT DEDUCTIABLE AS AN EXPENSE ITS COMES UNDER LOANS & ADVANCES AND IT WILL ADJUST AGAINT YOUR TAX LIABILITIES.
SAKET PANDEY
(CA FINAL STUDENT)
(256 Points)
Replied 10 March 2011
Agree with U S Sharma and Pankaj Arora.
Advance tax is not an expense but a liablity towords tax payable
It is advance payment of tax therefore is an asset which will be adjusted when you calculate and adjust the final tax payable.
M. N. JHA
(CA)
(8316 Points)
Replied 10 March 2011
No, it is not dedectable because this is not a expenses.........this is charge on income.
Himanshu
(article)
(22 Points)
Replied 10 March 2011
Advance tax is treated as loan and advance(assets), it will be adjusted against provision for tax when assessment will be made by the ITO.
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 10 March 2011
It is charge on income... It is not expenditure..
RAJESH SHUKLA
(SERVICE)
(543 Points)
Replied 10 March 2011
ADVANCE TAX IS NOT DEDUCTIABLE AS AN EXPENSE ITS COMES UNDER LOANS & ADVANCES AND
IT WILL ADJUST AGAINT YOUR TAX LIABILITIES AT THE TIME OF FINALISATION OF BALANCE SHEET.
AVIJIT
(CA FINALIST)
(370 Points)
Replied 10 March 2011
No.Advance Tax is not an expense and an asset as said by others. This will be adjusted against ur tax liability. This tax liability amount will be deducted from the profit in your books but you will not get any benefit as deduction while calculating profit as per Income Tax.
Aparna Raja K.C
(Student)
(520 Points)
Replied 11 March 2011
NO...
It will be treated as an asset and brought under Loans and advances head in the Asset side of Balance sheet.
And more over..
You can claim it as a set off against your tax liability.
I.e.Net Tax payable = Tax liability as computed less Advance Tax paid.
Manan Goyal
(2 Points)
Replied 02 May 2019
CAclubindia
