Dear all,
I want to know that where should I present provision for FBT in Companies profit and loss account either above the line or below the line. If Ibelow the line than what will be the treatment of provison for FBT in case of MAT if I take profit before tax (Income tax and FBT).
Please reply its urgent....
Thanks in advance....
Provision for FBT is below the line item and should be shown after profit before tax and under the head provision for taxation.
FBT is an allowable reduction for the purpose of calculation of MAT. Hence if you start from profit before tax for MAT calculation then it will be deducted and if you start after profit after tax then no need to deduct.
CAclubindia
