Salary payable

[yujin kim]

We need your help.

Our company has foreigner employee.

He paid his income tax . and submitted income tax return.

But company hold his salary. means company didn't pay salary but we should put that amount 'salary payable ' in the Tally.

But we didnt put that amt, so our CA also didn't put that amount in our balance sheet.

This is 1 year before only(2010-11FY), so do we have to revise balance sheet?

that salary payable amount is 1lac * 12 =1320000 Rs

Everything we want to do legally and try to follow rule.

What can we do

The reason we didn't pay salary to that employee is we 've paid him salary ouside of India(another company) .

and we've paid income tax outside of India & India together.

[CAGOPALJI AGRAWAL]

Unable to understand yr query

AI Summary

Recognition of salary payable: company should record unpaid foreign employee wages and address accounting and tax compliance. Company failed to record unpaid wages for a foreign employee in 2010-11 despite the employee having paid income tax; the unpaid amount was not shown as salary payable in the accounts. The operative issue is whether the liability should be recognised and the balance sheet revised; the company should evaluate obligation recognition under accounting standards, consider adjusting prior period statements or disclosing the liability, and align accounting records with tax reporting after consulting its chartered accountant.