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Provision for tax

Tax queries 722 views 3 replies

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.

Replies (3)

it can show such provision under prior period item and below the line it is permitted as per existing AS

i am agrre with amit agrawal i hope it wiil clear all your doubts regular savings account

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

 


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