Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Refund from irctc

Mohammed Shahid Rahman (Partner) (143 Points)

04 April 2016

Hi,

I am maintaining my personal account. In current year I have lots of travel tickets done through IRCTC and in Tally I have put it under "Travelling Expenses" under INDIRECT Expenses head in Tally. For some reason I had to cancel the ticket and for that I have created "Refund from IRCTC" and put it under INDIRECT Income head under tally. I would like to know whether the above treatment is correct or not.

If not then please give an example. As I am new in accountancy I wont be able to undestand without example.

Thanks and regards

Reply
Follow
Share

10 Replies

ashish bista (Student) (55 Points)
Replied 04 April 2016

Route both booking and cancellation through same head of account i.e. "Travelling Expenses".

At the time of booking Exps,

Travelling expenses Dr. XXX

To Bank XXX

(narration)

At the time of amount recvd on Cancellation

Bank A/c Dr. XXX

To Travelling Expenses. XXX

( give proper reason in narration )

Amount received on cancellation is not a income. So pass above journal entry.

Thanks

Upgrade to CAclubindia Pro. Subscribe Now!

Mohammed Shahid Rahman (Partner) (143 Points)
Replied 04 April 2016

Hi Thanks for the reply. In light of above entries, should I treat the following entries in the same way:

1. Refund from Income Tax

2. Received LPG Subsidy (i take refill cylinder and pay by cash)

3. Refund from Thyrocare as booking cancelled Thanks

Thanks

CMA Poornima Madhava (CMA) (13112 Points)
Replied 04 April 2016

If payments made are accounted as expense (subsidy & thyrocare refund), then credit the refund/subsidy to the respective expense account (as said by Ashish), so that the closing balance is the net amount.
In case of refund of IT, where it includes interest also, such interest should be recognized separately as interest income under separate head. Tax refund can be credited to the same account which was debited earlier (at the time of payment)

Mohammed Shahid Rahman (Partner) (143 Points)
Replied 04 April 2016

Hello Poornima,

Thanks for the reply.

I found a post regarding LPG Subsdy which I am pasting below:

/forum/lpg-subsisdy-320853.asp

I hope that will help other ppl like me.

Thanks once again for the reply.

MAYUR BIYANI (Assistant Manager-Taxation & Accounts) (142 Points)
Replied 06 April 2016

travelling refund should be correspondingly credited in expense head only..it wil nullify the booking & cancelltion only cancelltion chgs wil remain as expenses.
it refund should be basically shown under other current asset ie where you have shown income tax provison & advance tax..and interest amount should be routed to income thru it..

Upgrade to CAclubindia Pro. Subscribe Now!

Mohammed Shahid Rahman (Partner) (143 Points)
Replied 06 April 2016

Thanks for the help Mayur.

soumyaahuja (manager) (40 Points)
Replied 05 November 2016

hello

you can get your money back at refund option on irctc website by create irctc account on irctc sign up page and apply for refund.

rishabhj2019 (mjhhj) (28 Points)
Replied 15 March 2017

Refund have its own limitations and conditions, before booking you should see this condition and than book tickets. it may take some time to refund your money you can read this condition after irctc sign in.

Rupal Singh (Executive) (49 Points)
Replied 12 July 2017

Hi,If you cancelled your ticket, normally it takes 24–48 hrs to refund your amount but in worst condition it can take 5 to 8 working days also.You can apply for cancel ticket from IRCTC website after doing irctc sign up if not done.