Is it necessary for a proprietorship concern to create provision for tax or is there any alternative.
13 Replies
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 01 July 2011
Proprietor have to file ITR as an individual only normaly.
If they have paid advance tax then book the entry accordingly.
In my view there is no need to make any provision as we see in company.
Correct me if i am wrong.
Anjaly.P.A
( Article( CA Final))
(221 Points)
Replied 01 July 2011
In my view, It is not mandatory to provide provision for income tax for a proprietory concern.
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 01 July 2011
| Originally posted by : Anjaly.P.A | ||
 |
In my view, It is not mandatory to provide provision for income tax for a proprietory concern. |
 |
AGREED
shaishav soni
(CA final)
(348 Points)
Replied 01 July 2011
Agreed with tushar & others also not necessary to make such provision but if there is any advance tax or Tds same may be adjusted.
rahul
(article)
(34 Points)
Replied 01 July 2011
thanks for the reply,well u say TDS aur advance tax needs to be adjusted ,but,suppose his tax liabilityy is of 5000 and the TDS deducted is 200000.whether the whole TDS amount will treated as current asset or the net of provision TDS amount.
Anjaly.P.A
( Article( CA Final))
(221 Points)
Replied 01 July 2011
In my view, it is better to show the whole TDS in the accounts. Only then Form 16A will tally with accounts.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 01 July 2011
AGREE WITH ABOVE SHOW ALL TDS
AGREE WITH ANJALY
Mukesh Kumar Singh
(CA-FINAL)
(4094 Points)
Replied 01 July 2011
| Originally posted by : Anjaly.P.A | ||
|
|
In my view, It is not mandatory to provide provision for income tax for a proprietory concern. |
|
Agreed
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 01 July 2011
| Originally posted by : Anjaly.P.A | ||
|
|
In my view, It is not mandatory to provide provision for income tax for a proprietory concern. |
|
SANJAY JAIN
(sanjay.jain_sidhu1989@yahoo.com)
(30 Points)
Replied 01 July 2011
It is not mandatory for proprietory concern to provide provision for tax
Anvesh Desai
(Chartered Accountant)
(156 Points)
Replied 01 July 2011
Its absolutely depends on the proprietor...No legal requirement for creating provision for tax in case
of proprietorship...
Hence if he wants to then he can otherwise not...
CA JAGJIT
(Cleared CA in first Attempt)
(142 Points)
Replied 02 July 2011
In india there is no law governing Proprietorship concern, and accordingly Provision for Income tax is not mandatory as business and assessee are different.
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