provision for tax

This query is : Resolved 

19 August 2010 Thank you Amit sir for responding, however since income tax does not accrue evenly over time I don't think that it will be appropriate to apportion it on the basis of time. I feel it should be apportioned on the basis of profit or sales.could u please clarify the same giving the logic behind your reply.

19 August 2010 It should be distributed in proportion of profit or sales only.

19 August 2010 U have to first calculate Profit of pre and post acquisition by dividing expenses in time or sales ratio. After it on the basis of ur profit u have to calculate/divide the provision for tax. It will be near to the amount which will came if u calculate it using time ratio.




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