Please Help: direct taxes
Posted Date : 02-Oct-2011 , 04:32:37 pm | Posted By: Deepak Gupta
Category :
Income Tax | Answers :
1|
Comments :
0| Hits: 423
|
|
in case of companies on what basis,provison of taxes is taken in profilt/loss a/c |
 |
|
|
Answers:
|
 Answer by: CA VIPIN GARG |
| Dear Deepak regarding income tax, the provision will be created on the profit finalise @ of 30% and taken the same to the profit and loss account.
As regards other taxes like :-
Sales tax, if you are taking the input credit of the same then there will be no treatment in profit and loss account and if you are not taking the credit of sales tax then it will be part of your purchasing cost.
Similarly regarding other indirect taxes are concern same principle will be applied that means if you are taking the credit of the taxes then no treatment in profit and loss account and if not that will be shown in the respective by merging with the relevant expenses.
Hope you got the answer you were looking, pls ask further query, if any.
Have a nice day Deepak
|
|
|
|
|
|
|
|
