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PROVISION FOR PROPERTY TAX ON BUILDING, WHETHER IT REQUIRE DEFERRED TAX TREATMENT AS PER AS 22

This query is : Resolved

CA H R RAMA SWAMY (Querist)
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24 August 2023 Company is making the provision for property tax on its building, Since the disputes with the municipal authority it will not be paid before filing the due date of return of income, payment will be made only after getting the property tax assessment order from the dept. whether we need to provide the deferred tax treatment in the books of the company as per AS 22

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 August 2023 Yes, The deferred income tax is a liability that the company has on its balance sheet but that is not due for payment yet. This more complicated part of the income tax provision calculates a cumulative total of the temporary differences and applies the appropriate tax rate to that total.

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