Please Help: Accounts
Posted Date : 25-Jun-2011 , 03:49:00 am | Posted By Niraj Kumar Sharma
Tax is Expenses or not, if not then why do we show it in debit side of P/L A/C
Category : Students | Answers : 5 | Comments : 2 | Hits : 443
Answers
Answer By: Ketan Samdani
Tax is an expenditure which is charged on accrual basis as per provisions of AS 22.
Answer By: Rambabu Senkarasetti
Yes it is an expense, and shown in P&l
Answer By: Rambabu Senkarasetti
Yes it is an expense, and shown in P&l
Answer By: Rambabu Senkarasetti
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.
Comments
zeba
25-Jun-2011 , 09:47:06 amyes, 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.
Niraj Kumar Sharma
29-Jun-2011 , 03:50:30 am