MCA Notifies Deferred Tax Asset or Liability to Government Company as Not Applicable

Feb 06, 2018 | by Avantis RegTech Legal Research Team

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The Ministry of Corporate Affairs (MCA), vide its notification, has announced that the provisions of Accounting Standard 22 or Indian Accounting Standard 12 relating to deferred tax asset or deferred tax liability will not be applicable, for seven years with effect from the April 01, 2017, to a Government company which:—

(a) is a public financial institution under section 2(72)(iv) of the Companies Act, 2013;

(b) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI) 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 75% of its total revenue being generated from such business with Government companies or other entities owned or controlled by Government.

[S.O. 529(E); F. No. 17/32/2017-CL-V]




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