Query in preparing cashflow statement.

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Ramachandra Bhakta (Querist)
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10 December 2014 Dear Sir/Madam,

Kindly explain what will be the treatment of TDS payable in cashflow statement.

I am facing a situation like this, please put some light on the following-

1. Opening bal of Provision for tax is Rs. 62,517.

2. Tax liability is Rs. 63,090.

3. Current year provision for tax is Rs. 5,98,863.

4. Advance Tax paid for current year is Rs. 4,00,000.

5. TDS Payable for current year is Rs. 13,146.

Note: I have taken figure of profit before providing for any tax.

Kindly explain the treatment of above in cashflow.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 December 2014 for payable item how it can be shown in cash flow except if recorded in books debit side of p n l and den add back to net profit.

1.no adj
2.added to pn l- operating activities
3.operating activity
4.operating
5. add to pnl -operating
4.

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Ramachandra Bhakta

Ramachandra Bhakta (Querist)
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10 December 2014 Sir, thank you for your kind response. But can u elaborate on point 3 and 4.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 December 2014 provision is non cash exp so already deducted from net profit so adding it back.

advance tax is paid for operation of co as per it act so its operating activity and cannot be other activity

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