MCA notifies Exemption for NBFCs, PFIs from AS-22/ Ind AS-12 relating to deferred tax or liability for 7 years
The MCA has notified exemption for Govt. NBFCs, Public Financial Institutions (PFIs) like LIC, UTI, etc. from applicability of AS-22/ Ind AS-12 relating to deferred tax asset or liability, for a period of 7 years from 1 April, 2017 onwards, as under:
S.O. 529(E).- In exercise of the powers conferred by sub-section (6) of Section 129 of the Companies Act, 2013 (18 of 2013), the Central Government, in the interest of public, hereby directs that the provisions of Accounting Standard 22 or Indian Accounting Standard 12 relating to deferred tax asset or deferred tax liability shall not apply, for seven years with effect from the 1st April, 2017, to a Government company which:—
(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.