Dushyant (Student) (24 Points)
27 April 2009Hey guys, can any of you clarify my following query?
Should Accrued expenses be exclusive of GST goods and service tax?
I feel providing ST on all the accrued expenses (liable to ST) is not appropriate as in the case where a company is eligible for Input Tax Credit, then by providing ST on accrued expenses, company will be showing the amount of ST as an asset in the books without actually making the payment for it?
Nagesh M R
(Service)
(113 Points)
Replied 27 April 2009
Tax amount should be accounted as per the hardcopy of the invoice. In accrual expenses you may not be recieved the original invoice. Only provision amount can be booked and after receiving original invoice you can reverse the provision entry and book the expenses including taxes.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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