Monday, April 14, 2014

New Corporate Law > BS ; BL throws up a catena of irresolute controversies ?


When the tax bill is unreasonable

Going by one's limited know of things, but as a novice, before the introduction of later novelties like MAT,  be it a business or professional firm , if professionally managed,  was known, almost on a day-to-day basis, to keep a watch on the 'bottom line' first, to take a conscious decision on the 'top line' and the one in-between. As regards any other, e.g . tax man, same way as a shareholder,  used to have his eyes glued mainly to the bottom line ; and as such, used to be least bothered as to how those are reflected or disclosed in the Balance Sheet. Again , going by the same limited knowledge, may be outdated now, with such  changes as MAT, the old practice could have changed.
Be that as it is inevitable,  if one is not mistaken, there used be a confusion on, - had a demand notice been served, litigable or not, as to whether or not it should be, in the books and final accounts, disclosed as a liability certain, not 'provision' for a contingent liability ; and only in the event of  and depending on the final outcome, treatment and manner disclosure need to accordingly require a revision.
Incidentally, the intriguing part , as noted by a layperson with a pinch of salt, is  the bottom line- claiming,  that "the views are personal". It is unclear  why the need to specifically saying so;  as , could that, after all,   be any different even otherwise !

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