+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4)
+--- Forum: Students (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=13)
+--- Thread: Any one teach Tax 2 me (/showthread.php?tid=760)
Any one teach Tax 2 me - ahmedpk - 03-31-2004
i want to know all tax in accouning how they should be recorded
with all journel entres.. can any one help me.
- muzammil - 03-31-2004
Well, if you want to study tax of ACCA, i would advise you that you won't find any other best teacher than Haroon Tabraiz. I don't know whether he is taking CA tax or not but he is a remarkable teacher and it gives me a feeling that he must be teaching tax to CA students as well.
Edited by - muzammil on Mar 31 2004 35244 PM
- smraza - 03-31-2004
for provision
Debit Income Tax expense
Credit Provision for taxation
for Advance income tax
Payment
Debit Advance income tax
Credit Cash / Bank
deducted by parties
Debit Advance income tax
Creditparty account
ADJUSTMENT AFTER FINALIZATION OF ASSESSMENT
compare the net liability / asset as per books and as per assessment order.
e.g. company has tax asset(advance tax) of Rs.1000/- and provision (liability) of Rs.1200/-
and the ITO accepts the asset of Rs.900 (reject Rs.100 being unsupported) and determines the liability of Rs.1300/-, so as per books net liability is Rs.200/- and as per assessment order net liability is Rs.400/-, now we have to make the payment of Rs.400/- to Income tax department, then following entry is to be passed
Debit Provision for taxation Rs.1,200/-
Debit Income Tax Expense(Prior Years) Rs. 200/-
Credit Advance Income Tax Rs.1,000/-
Credit Bank / Cash Rs. 400/-
I think this will help u in understanding the accounting entries of income tax.
SMR
- smraza - 03-31-2004
Now suppose, provision as per books is Rs.1200/- and advance tax is Rs.2000/-
and ITO determines the liability of Rs.1300/- and adjust the same againt the advance income tax and determine the refund of balance amount of advance income tax then following entry should be passed
Debit Provsion for taxation Rs.1200/-
Debit Income tax refundable Rs. 700/-
Debit Income tax expense (Prior year) Rs.100/-
Credit Advance income tax Rs.2000/-
when the cheque has been received from IT dept
Debit Bank Rs.700/-
Credit income tax refundable Rs.700/-
SMR
- ahmedpk - 04-02-2004
Dear SMRAZA i m very glad to see that u had reply me in deeply but problem is that i dont know about the head like u/s 50(?) can u give me time if u r in karachi i will meat u also want to know about some sale tax .... waiting 4 ur reply
- smraza - 04-02-2004
Section 50 of ITO 1979, deals with the tax to be deducted at source while making payments. The payer should deduct the income tax at source, while making payments, as per the Section 50 of the ITO, 1979.
and dear ahmed, i m extremely sorry that i cant meet you, although i m in karachi. the reason being these kind of forums are designed to discuss everything what u want without identifying yourself. btw have u gone through the ATR 14 issued by ICAP, definately not, if u have gone through the hourly rates prescribed by ICAP they you must not have asked me teach you tax. <img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle>
anyways i m available in the forum, post your questions in the forum, may be you get more valuable answers from other members.
Regards
SMR