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Audit - kamran ali - 12-03-2010
Hi! Any body can learn me about tax paid showing in the cashflow statetment.I m confused about it,because there are numerous taxes,like provision for tax of previous year, advance tax, income tax refundable and income tax payable..so my question is about which kind of tax amount should be there under the head "tax paid" in the cashflow statement.
I will be very thankful
- awaisaftab - 12-06-2010
The amount of Tax Paid is determined by making T Accounts. The amount of tax paid is ussually a balancing figure.
- kamranACA - 12-06-2010
Add followings
1. Current year's provision for "current" tax from profit and loss account (expense)
2. Opening balance of provision for current tax from balance sheet (liability)
3. Closing balance of advance income tax from balance sheet (asset)
4. Closing balance of income tax refundable from balance sheet (asset), if it is also given
From this total deduct the following
1. Closing balance of provision for current tax from balance sheet (liability)
2. Opening balance of advance income tax from balance sheet (asset)
3. Opening balance of income tax refundable from balance sheet (asset), if it is also given
The resultant net figure is cash outflow on account of Income Tax to be taken to cash flow statement.
Regards,