Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: articles on VAT and GST in India :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: Central Excise rule to resale the machines to a new company :: empanelment :: TDS :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
News Headlines »
 How to link your Aadhaar and PAN details to file income-tax returns
 How to calculate capital gains tax on property sold at less than stamp value?
 Return Filing - Under GST, this is how you will file tax returns from July 1
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits

SC refuses to stay AS-22
July, 31st 2007
The Supreme Court on Monday refused to stay accounting standard AS-22 though it admitted the petitions of some corporate houses challenging this new norm issued by the Institute of Chartered Accountants of India on deferred tax liability of listed companies.

A bench comprising Justice SH Kapadia and Justice BS Reddy observed that the norms would continue to be in operation after Solicitor General GE Vahanvati appearing for Centre opposed the petitions saying AS-22 had come into effect in 2001. Counsel P Dayal appearing for the Institute of Charted Accountants of India also opposed stay on the new accounting method saying that it was envisaged after much thought.

Simplex Infrastructure, First Leasing Company of India and Association of Leasing and Financing Services Companies had sought quashing of AS-22 on the ground of it being ultra vires.

Under AS-22, a company became liable to provide for deferred tax liability on the first day the company accounted for its income in accordance with the AS-22 even when there was no certainty.

The petitioner companies through its counsels submitted that deferred tax liability was a notional liability that can be charged to the profit and loss account (PLA).

Deferred tax liability arises when a firm underpays its taxes due to a difference between how it accounts for an asset on its book versus how it accounts for it on tax basis.

Earlier, the Calcutta High Court had upheld AS-22 which had brought in a new concept called deferred taxation. The court while upholding it had observed that deferred tax liability was not a notional tax liability but a real liability because it would result in future cash outflow in the form of tax payment to the tax recovering authority.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions