03 May 2010
CARO reads : 1. Incase of dues of Income tax/Sales Tax/ Wealth tax/ Service Tax/ Custom Duty/ ED have NOT BEEN depositted on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned.
The amount disclosed under the above head should tally with the Contingent Liability right? Are there any reasons why Due as per CARO needn't tally with Contingent Liability/Outstanding Liability? Pl throw light.
03 May 2010
CARO states to disclose amount that have NOT BEEN depositted on account of any dispute i. e. only the outstanding amount remaining after payment of taxes against dispute whereas contingent liability would include the gross amount.
03 May 2010
Contingent liability includes gross amount meaning what? For eg: if there's a deposit that's made, are you telling me it'd feature in COntingent liability!
03 May 2010
Yes as you have only paid tax for the same but have not made a provision for the same in the books of accounts i. e. tax paid is shown under loans & advance under taxes paid under protest and not charged to revenue untill the finality of order.
CAclubindia
