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Provision for tax-revised schedule vi

CA Jaynam S. Shah (Looking for Job) (206 Points)

25 May 2012

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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2 Replies

Atul.K. (IPCC+Service) (46 Points)
Replied 25 May 2012

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

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shivam gupta (Student) (142 Points)
Replied 25 May 2012

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)