can a company make provision for tax in a particular financial year for its last previous year(ie.a.y's 10-11 prov in f.y 11-12) ,whether it s correct to do so ,how & why??
thanx in advance.
nitin suvarna (C.A FINAL) (828 Points)
12 December 2011can a company make provision for tax in a particular financial year for its last previous year(ie.a.y's 10-11 prov in f.y 11-12) ,whether it s correct to do so ,how & why??
thanx in advance.
amit agarwal
(dept head)
(137 Points)
Replied 12 December 2011
it can show such provision under prior period item and below the line it is permitted as per existing AS
michaelK
(NA)
(46 Points)
Replied 12 December 2011
i am agrre with amit agrawal i hope it wiil clear all your doubts regular savings account
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 12 December 2011
You can show the provision for tax for all the years in the P&L account. However in the ‘Notes to Accounts’ you can specify the details of the tax provision made by giving the amount & the year
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
