sudhir rawal (B.COM/PCC/ARTICLE/'O'LEVEL) (314 Points)
02 February 2010hello frends
i have a query regarding cash flow statement
what is treatment of provisions for tax and advance tax
it's urgent
thanks you
Amir
(Learner)
(4016 Points)
Replied 03 February 2010
Dear Sudhir,
Friend Dipesh has rightly mentioned, just want to add that the"Advance Tax will be deducted from "cash from Operating Activities" & "Provision for Tax" will be added for adjustment of Non cash items....
CA munjal
(articled clerk)
(100 Points)
Replied 06 February 2010
According to Dipesh "PROVISION FOR TAX AND DIVIDENDS FOR THE CURRENT YEAR ARE ADDED TO THE PROFIT IN CFS IN THE BEGINNING OF CFS UNDER INDIRECT METHOD AND ADVANCE TAX IS ADJUSTED AGAINST TAX PAYABLE FOR THE CURRENT YEAR......"
But I doubt because there is nothing like tax payable for the current quarter in a cash flow statement.
PAYAL
(STUDENT)
(34 Points)
Replied 07 February 2010
hey munjal r u mad? ur doubt is useless. mr. dipesh and mr. amir had given correct answers. r u a ca? i think u r ignorant
CAclubindia
