As per Revised Schedule VI, what should be the treatment of Provision for tax and advance tax ?? should they be disclosed net ?? I did some r&d on this, but dint found any convincing answer. So i expect better reply from u people. Please reply soon.
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Provision for tax-revised schedule vi
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Provision for income tax(Net) should be shown under the heads>> Current Liabilites >> short term provisions.
Advance tax(if any and net off provision) be shown under the heads>>Non-current Assets>>Long term loans and advances.
Awaiting more expert opinions.
Ref. Audit/annual report of Reliance industries Ltd. FY11-12
As per Revised schedule provision can be classified under Long term provision & short term Provision
Provision for tax changes from year to year it means that it can be classified under short term provision (Under Current LIabilities)
& provision regarding employee Benefits (EPF) will be shown under long term provision (Non Current Liabilities)
& same treatment for the Advance tax becoz such amount is likely to be adjuster with the co. current year tax so it will be classified under Short term Loans & Advances (Under Current Asset)
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