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Revised schedule vi.

This query is : Resolved 

Sir,

I have a query regarding provision for current year tax, advance tax
and TDS Receivable about it disclosure in revised schedule VI format.
As Current years tax is a current liability and Advance tax net of
provision for tax is refund which is also to be treated as Current
Assets . But while going through Reliance Annual Report they have made
the disclosure as long term term Loans & Advances. And in case of TCS
Annual Report , they have disclosed Advance tax(including refund
receivable) as Long term Loan & Advances and Current Income Tax as
Short term Provision......So can you brief us about the above said
issue and how to give the correct treatment.

Hoping for a favourable response


Yes the correct treatment as per new classifications in Sch VI is to show the current years' liability under Current Liabilities (since it has to be paid before filing IT return). Any advance taxes as per books after netting off provisions for respective years should be shown under Long-term Loans and Advances (unless Refund Orders have been passed) since they are not likely to be refunded in the short-term.


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