Accountancy Forum

IAS 12 requires disclosure of a reconciliation of accoutning profit with the taxable profit please can some body tell me application of the disclosure requirement on companies who are under Presumptive tax regime in which tax deducted at source is taken as final tax liablity.

Who can such tax liablity (Tax deducted at source) be reconciled with accounting profit

my friend im a bit out of touch but to ensure that ppl come to reply to you I would say that presumtive tax regime does not allow for such a reconciliation.
the normal concept of direct taxation is based on profits.
This is a case of local regulation making such reconciliation not applicable (I would be happy to stand corrected).
You can prepare a reconciliation of tax deducted to accounting number of purchases/consumption, for example. But I dont think it would make much sense.