Please Help: Interest on income tax, tds, s. tax, electriciy bill
Posted Date : 12-Nov-2011 , 07:25:16 pm | Posted By: Anoop Bhatia
Category :
Accounts | Answers :
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Sir,
I want to know under which schedule of P&L A/c we should show the interest exp relatin to late payment of income tax, TDS, Service Tax, Electricity.
I think we should charge it under the schedule Administrative Exp, but my senior is of the view that we should show these exp under schedule "Interest and Finance Chage".
I am not satisfied with him since schedule "Interest and Finance Chage" relates to exp relating to long term projects.
Please help and provide the correct solution
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Answers:
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 Answer by: Ashish Karundia |
| Dear Anoop,
Interest on account of late payment of tax etc. should be shown as a separate sub-item under the head 'interest' with a proper disclosure of its nature or as a separate line item in the profit and loss account. Further, it can be clubbed with any other items, if any, under the head 'interest and penalties'provided it does not exceeds Rs. 5000 or 1% of total revenue, as the case may be. [Refer opinion given by Expert advisory committee of ICAI - http://220.227.161.86/eac/eacfinal/vol26/23.htm].
Thus, it cannot be shown under the Administrative Exp. However, it can be shown as a separate sub-item under the head 'Interest and Finance Charge' or else under 'Interest and penalty'.
Hope the above suffice.
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| Comments |
| Posted By : Shashi |
12-Nov-2011, 11:43:40 |
| i think your senior is correct......... |
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