Chinmay Das (Director) (39 Points)
02 February 2015Dear Friends,
I have a doubt on quantification of Provision for Tax.Is the Tax Provision is created considering the profit as per income Tax Act or as per Companies Act?If the companies Act PBT is Rs100,000 & there is a Loss as Per income tax Act then is there a requirement of Tax Provision?
praveen
(Chartered Accountant)
(6971 Points)
Replied 02 February 2015
If there is a loss as per income tax computation of book profits, then income tax provision need not be made.
However, you might have to make provision for deferred tax for the timing difference.
https://capraveenmr.wordpress.com/2015/02/02/deferred-tax/
for constant updates on taxation, accounting & company law visit https://capraveenmr.wordpress.com/
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