Please Help: Accounts
Posted Date : 25-Jun-2011 , 03:49:00 am | Posted By: Niraj Kumar Sharma
Category :
Students | Answers :
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Tax is Expenses or not, if not then why do we show it in debit side of P/L A/C |
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Answers:
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 Answer by: Ketan Samdani |
| Tax is an expenditure which is charged on accrual basis as per provisions of AS 22.
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| Answer by: Rambabu Senkarasetti |
| Yes it is an expense, and shown in P&l
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| Answer by: Rambabu Senkarasetti |
| Yes it is an expense, and shown in P&l
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| Answer by: Rambabu Senkarasetti |
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| Answer by: Vikash Kumar Jha |
| Tax is arise on the profit as per income tax act and we need profit after tax paid thats why we are showing as debit side of profit and loss A/c.
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| Comments |
| Posted By : Zeba |
25-Jun-2011, 09:47:06 |
| yes, it is an expense.it is an operating expense as business can not be run sucessfully if tax is not paid.hence should be shown in P&L. |
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