LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

urgent query regarding cash flow statement

sudhir rawal (B.COM/PCC/ARTICLE/'O'LEVEL) (314 Points)

02 February 2010

hello frends

i have a query regarding cash flow statement

what is treatment of provisions for tax and advance tax

it's urgent

thanks you

Reply
Follow
Share

7 Replies

(Guest)

PROVISION FOR TAX AND DIVIDENDS FOR THE CURRENT YEAR ARE ADDED TO THE PROFIT IN CFS IN THE BEGINNING OF CFS UNDER INDIRECT METHOD AND ADVANCE TAX IS ADJUSTED AGAINST TAX PAYABLE FOR THE CURRENT YEAR......

Amir (Learner) (4016 Points)
Replied 03 February 2010

Dear Sudhir,

Friend Dipesh has rightly mentioned, just want to add that the"Advance Tax will be deducted from "cash from Operating Activities" & "Provision for Tax" will be added for adjustment of Non cash items....

1 Like

CA munjal (articled clerk) (100 Points)
Replied 06 February 2010

According to Dipesh "PROVISION FOR TAX AND DIVIDENDS FOR THE CURRENT YEAR ARE ADDED TO THE PROFIT IN CFS IN THE BEGINNING OF CFS UNDER INDIRECT METHOD AND ADVANCE TAX IS ADJUSTED AGAINST TAX PAYABLE FOR THE CURRENT YEAR......"

But I doubt because there is nothing like tax payable for the current quarter in a cash flow statement.