Provision for tax

This query is : Resolved 

22 September 2010 Respected Experts
Is it correct to show Provision for tax equal to the amount of Tax Payable and Interest u/s 234A & 234B instead of showing interest payable seperately in P&L as an expense?

How it would be disclose in Statement of Income?

22 September 2010 Provision for taxation is to be made for income tax plus surcharge (if applicablea)plus cess plus secondary and higher eduction cess. Thus the gross amount should be shown in P & L as well as in B/S.

22 September 2010 provision of income tax also included interest u/s 234.you can not disclose interest payable as expenses in p&l a/c. Provision of income tax must be disclosed under the line of p&l A/c


22 September 2010 more clarity required....... disclosure has been made as answered by Mr.Navin Jain

22 September 2010 Second line of the query is overlooked .
Observation of Navin Ji is undoubtedly correct meaning thereby provision is to be made for IT + SC+ CESS+ SHE CESS + 234 interest.
Error is honestly regretted.

23 September 2010 Thank you very much sir...



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