The Ministry of Corporate Affairs (MCA) last day notified that the provisions of Accounting Standard 22 or Indian Accounting Standard 12 relating to deferred tax asset or deferred tax liability are not applicable to certain Government Companies.
Earlier, a Notification issued in February prescribed that the provisions would not be applicable to the following Government Companies for seven years with effect from the 1st April 2017;
(a) a public financial institution under sub-clause (iv) of clause (72) of section 2 of the Companies Act, 2013;
(b) a Non-Banking Financial Company registered with the Reserve Bank of India under section 45-IA of the Reserve bank of India Act, 1934; and
(c) a Company engaged in the business of infrastructure finance leasing with not less than seventy-five per cent. of its total revenue being generated from such business with Government companies or other entities owned or controlled by Government.
Now, as per a notification issued on Monday, the Government has removed the words “seven years”. Consequently, the provisions would not be applicable to the above Companies.
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