Government company exempted from AS 22 or Ind AS 12

Government company exempted from AS 22 or Ind AS 12 : Vide Notification Number 529(E) government Company was earlier exempted from applicability of Accounting Standard 22 or Indian Accounting Standard 12 relating to deferred tax asset or deferred tax liability. This exemption was available for government companieswhich: (a) is a public financial institution under sub-clause (iv) of clause (72) of section 2 of the Companies Act, 2013; (b) is 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) is 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 . As per press release of PIN this decision enabled IRFC to raise additional debt to the extent of over Rs. 63,000 crore. Earlier this exemption was available for seven years with effect from the 1st April, 2017. Vide Notification dated 02th April 2018, the limit of seven years has been omitted, which means that the Government Company fulfilling the above mentioned requirements will always be exempted fromAccounting Standard 22 or Indian Accounting Standard 12 relating to deferred tax asset or deferred tax liability.

---

Tags :AS 22 / Ind AS-12 not applicable on Government Company : MCA, DTA/DTL notapplicable on Government Company, Applicability of DTA/DTL, Government company exempt from DTA/DTL, Certain Govt Companies Exempted from Ind AS for Deferred Tax, MCA Exempts Government Companies from Complying with Ind-AS 12, AS 22 or Ind AS 12 not applicable to Government Company: MCA, MoCA Exemption notification to benefit Indian Railway Finance Corporation (IRFC),Recognizing Deferred Tax Assets/ Deferred Tax Liability under AS-22,Government company exempted from AS 22 or Ind AS 12,Government company exempted from AS 22 or Ind AS 12