Provision for Income tax

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Prasanna (Querist)
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02 September 2010 Sir,
I wanted to know whether there is any hard & fast rule for showing Provision for income tax on liability side & advance tax on asset side in a Co's balancesheet? Whether we can set it off n show the balance as refundable or payable? For A.y 2010-2011 co has prov for I-T Rs 1,00,000 & advance tax of Rs 1,50,000. If its shown separately then in which year it will be set off?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 September 2010 My understanding is provision and advance payments by way of tax should be shown separately in the balance sheet on the liability and assets side respectively. However, in published accounts of listed companies, net amount after setoff is only shown in the balance sheet on the strength of a specific note in the "notes on accounts". If separate disclosure is followed, setoff is recommended only on completion of assessment.

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