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very very very urgent

manik (ca in practice) (420 Points)

03 May 2011

ours is a construction company, we had made a provision for taxation for rs.315000 as on 31.03.10, there stands a dr. balance of tds deducted by client of rs.750000, the tax liability is rs.198000 and net refundable amt is rs.552000, how to do the adjusting entries, pls tel

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SACHIN KANSAL (y) (56 Points)
Replied 03 May 2011

Hi manik

First of all, writeoff the excess provision of Rs. 117000(315000-198000) by passing the entry

Provision for Tax a/c..............Dr 315000

To P&L Appropriation/ G.Reserve 117000

To TDS Receivable A/c 198000

And balance amt of TDS is t/f to Income Tax refund Receivable A/c, which settle when your company receive I.T refund.

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Originally posted by : SACHIN KANSAL
	Hi manik First of all, writeoff the excess provision of Rs. 117000(315000-198000) by passing the entry Provision for Tax a/c..............Dr 315000 To P&L Appropriation/ G.Reserve 117000 To TDS Receivable A/c 198000 And balance amt of TDS is t/f to Income Tax refund Receivable A/c, which settle when your company receive I.T refund.