Consequences for Non Provision for Taxation

[faisal_desperado]

Dear,

This is seems to be a controversial query as to why company has failed to do so?
However, if company has failed to have adequate provision with regards to the taxation under the said section, then it would create a qualification in the Audit Report<font size="3"><b>*</b></font id="size3">.
The said decision must have been taken by the Board Of Directors, accordingly, they shall be required to disclose the facts in the directors' report as to why provision has not been made.
However, if the matter is being disputed due to a valid reason, and a stay order has been obtained from the coart then the liablity should be disclosed as a contingent liablity.


<font size="3"><b>*</b></font id="size3"> <b><font color="navy">If the amount of liablity is significant and a valid reason has been provided by the Directors to satisfy the Auditor, then an emphasis with regards to the said matter be included in the Audit Report without qualifying the opinion.</font id="navy"></b>

In case of any ambiguity, queries may be raised

Best Regards,