Dear Friends,
I have a doubt on quantification of Provision for Tax.Is the Tax Provision is created considering the profit as per income Tax Act or as per Companies Act?If the companies Act PBT is Rs100,000 & there is a Loss as Per income tax Act then is there a requirement of Tax Provision?
If there is a loss as per income tax computation of book profits, then income tax provision need not be made.
However, you might have to make provision for deferred tax for the timing difference.
https://capraveenmr.wordpress.com/2015/02/02/deferred-tax/
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