07-16-2009, 03:04 PM
It is clear ,that WHT liability would be account for only at the time of payment to party(<b>sec 153),</b>and not on accrual basis.
Does same rule apply to Income earned but not received?,,we pay tax on our income instead of profit & loss account(<b>performance of contract i.e. 6% of income</b>),if we donot account for "WHT on income" of <b>june 09</b>,we must pay <b>tax in cash/bank </b> with annual return,(because june-09 WHT willnot adjust,while calculating our tax)
R/A from contractor-DR
Mobilization Adv----DR
Retention money-----DR
<b>WHT on june-09---DR</b>
Contarct Income-----CR(not yet received)
is this entry true on 30-06-09
Does same rule apply to Income earned but not received?,,we pay tax on our income instead of profit & loss account(<b>performance of contract i.e. 6% of income</b>),if we donot account for "WHT on income" of <b>june 09</b>,we must pay <b>tax in cash/bank </b> with annual return,(because june-09 WHT willnot adjust,while calculating our tax)
R/A from contractor-DR
Mobilization Adv----DR
Retention money-----DR
<b>WHT on june-09---DR</b>
Contarct Income-----CR(not yet received)
is this entry true on 30-06-09
