Dear sir,
Who can apply the as-22 in Partnership frm.? because deff tax is diff of Tax on book profit as per company act fand Tax on income accounting to IT Act .
kabirsen
(student)
(251 Points)
Replied 04 December 2009
Accounting Standard (AS) 22, ‘Accounting for Taxes on Income’, issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2001. It is mandatory in nature2 for:
(a) All the accounting periods commencing on or after 01.04.2001, in respect of the following:
i. Enterprises whose equity or debt securities are listed on a recognised stock exchange in India and enterprises that are in the process of issuing equity or debt securities that will be listed on a recognised stock exchange in India as evidenced by the board of directors’ resolution in this regard.
ii. All the enterprises of a group, if the parent presents consolidated financial statements and the Accounting Standard is mandatory in nature in respect of any of the enterprises of that group in terms of (i) above.
(b) All the accounting periods commencing on or after 01.04.2002, in respect of companies not covered by (a) above.
(c) All the accounting periods commencing on or after 01.04.2003, in respect of all other enterprises.
Shashi Bhushan
(Learner, Jalandhar)
(996 Points)
Replied 04 December 2009
| Originally posted by :krishan gopal | ||
| " | Dear sir, Who can apply the as-22 in Partnership frm.? because deff tax is diff of Tax on book profit as per company act fand Tax on income accounting to IT Act . |
" |
ofcourse it is applicable to partnership if its a reporting entity.
how to calculate:
Deffered tax is not difference between book profit and tax on income. its difference between Accounting income and Taxable income.
Taxable income means Total income. total income will not equal to accounting income. so timing difference and permanent difference will usually arise and you have to create deffered tax liability or asset.
CAclubindia
