PRAVIN KHAIRNAR (Account Assistant) (28 Points)
14 June 2013
@sh jais
(live the life otherwise life leaves u.....)
(1539 Points)
Replied 14 June 2013
HARI PRASAD
(M.COM)
(172 Points)
Replied 15 June 2013
Hello,
With refference to ur query aabout Provision for taxation for Rs.23000
first let us discuss about the what entry would be passed for above said transaction
1) Income tax a/c Dr 23000
To Provision for taxation a/c 23000
(being provisin for taxation for the yerar.)
Then come to advance paid for 20000
Jv entry ---- 2) prepaid/advance tax Dr a/c 20000
To Tax a/c 20000
3) P& L a/c Dr 20000
To Income tax a/c 20000
Final entry would be for left out balance i.e., for 23000-20000=3000 it remains back in balance sheet as liablity for the year. 4) income tax a/c Dr 3000
to Provision for tax 3000
(being leftover balance for Rs.23000-20000 = 3000)
I conclude.
Hari prasad.J
B.SEKAR
(manager-accts.)
(61 Points)
Replied 15 June 2013
Sir, Normally, when we get the asst. order from IT dept, we have to pass the jv. In this asst order we will come to know whether we have to remit balance tax or refund. At that time, we have to open an a/c called IT REFUND ORDER a/c. The provision for taxation a/c should be debited and it refund order is to be credited. The Income tax remitted is to be credited and IT refund order a/c is to be credited. By seeing the asst order we will know, the 234a and 234b interest has been collectged by it dept or interest has been paid for refund to us. That should be entered in P&l a/c as the case may be. Balance should be tallied. if you want to clear fully. send he details to chith1954 @ gmail.com. >>>>sent b y sekar.
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