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Atul Ltd | Annual Report 2016-17
Note 27.5 Current and Deferred tax
The major components of income tax expense for the years ended March 31, 2017 and March 31, 2016 are:
a) Income tax expense
(
`
cr)
Particulars
2016-17
2015-16
i)
Current tax
Current tax on profit for the year
81.80
103.56
Adjustments for current tax of prior periods
(2.07)
–
Total current tax expense
79.73
103.56
ii)
Deferred tax
(Decrease) | Increase in deferred tax liabilities
61.26
22.50
Decrease | (Increase) in deferred tax assets
(25.77)
(0.31)
Total deferred tax expense | (benefit)
35.49
22.19
Income tax expense
115.22
125.75
b) The reconciliation between the statutory income tax rate applicable to the Company and the effective
income tax rate of the Company is as follows:
Particulars
2016-17
2015-16
a) Statutory income tax rate
34.61%
34.61%
b) Differences due to:
i)
Expenses not deductible for tax purposes
0.75%
1.30%
ii)
Income exempt from income tax
(2.17%)
(0.99%)
iii)
Income tax incentives
(3.48%)
(2.94%)
iv)
Others
(0.94%)
(0.55%)
Effective income tax rate
28.77%
31.43%
c) No aggregate amounts of current and deferred tax have arisen in the reporting periods which have been
recognised in equity and not in Statement of Profit and Loss or Other Comprehensive Income.
d) Current tax assets
(
`
cr)
Particulars
As at
March 31, 2017
As at
March 31, 2016
As at
April 01, 2015
Opening balance
3.11
–
–
Add: Tax paid in advance, net of provisions during the year
(3.11)
3.11
–
Closing balance
–
3.11
–
e) Current tax liabilities
(
`
cr)
Particulars
As at
March 31, 2017
As at
March 31, 2016
As at
April 01, 2015
Opening balance
–
5.19
–
Add: Current tax payable for the year
79.73
103.56
80.50
Less: Taxes paid
(77.74)
(108.75)
(75.31)
Closing balance
1.99
–
5.19
Notes
to the Financial Statements