By Himanshu V. Kishnadwala, Chartered Accountant
TATA CONSULTANCY SERVICES LTD
The income tax expense consists of the following:
|
(Rs. crores)
|
|
|
2017
|
2016
|
|
Current tax:
|
|
|
|
Current
tax expense for current year
|
6,762
|
6,344
|
|
Current
tax expense/(benefit) pertaining to prior years
|
(119)
|
32
|
|
|
6,643
|
6,376
|
|
Deferred
tax benefit
|
(230)
|
(112)
|
|
Total income tax expense recognised in the current year
|
6,413
|
6,264
|
The reconciliation of estimated income tax
expense at statutory income tax rate to income tax expense reported in
statement of profit and loss is as follows:
|
|
Year ended March 31, 2017
|
Year ended March 31,
2016
|
|
Profit
before income taxes
|
30,066
|
29,339
|
|
Indian
statutory income tax rate
|
34.61%
|
34.61%
|
|
Expected
income tax expense
|
10,406
|
10,154
|
|
Tax effect of adjustments to reconcile expected income tax
expense to reported income tax expense:
|
|
|
|
Tax
holidays
|
(4,134)
|
(4,468)
|
|
Income
exempt from tax
|
(27)
|
(34)
|
|
Undistributed
earnings in branches and subsidiaries
|
(60)
|
90
|
|
Tax
on income at different rates
|
166
|
285
|
|
Tax
pertaining to prior years
|
(218)
|
32
|
|
Others
(net)
|
280
|
205
|
|
Total income tax expense
|
6,413
|
6,264
|
The Company benefits from the tax holiday available for units
set up under the Special Economic Zone Act, 2005. These tax holidays are
available for a period of fifteen years from the date of commencement of
operations. Under the SEZ scheme, the unit which begins providing services on
or after April 1, 2005 will be eligible for deductions of 100% of profits or
gains derived from export of services for the first five years, 50% of such
profits or gains for a further period of five years and 50% of such profits or
gains for the balance period of five years subject to fulfilment of certain
conditions. From April 1, 2011 units set up under SEZ scheme are subject to
Minimum Alternate Tax (MAT).
Significant components of net deferred tax assets and
liabilities for the year ended March 31, 2017 are as follows:
|
|
Opening
balance
|
Recognised /reversed through profit and loss
|
Recognised in/
reclassified from other comprehensive income
|
Closing
balance
|
|
Deferred tax assets / (liabilities) in relation to:
|
|
|
|
|
|
Property,
plant and equipment and Intangible assets
|
(22)
|
(62)
|
–
|
(84)
|
|
Provision
for employee benefits
|
238
|
58
|
–
|
296
|
|
Cash
flow hedges
|
(7)
|
–
|
(5)
|
(12)
|
|
Receivables,
loans and advances
|
183
|
22
|
–
|
205
|
|
MAT
credit entitlement
|
1,960
|
102
|
–
|
2,062
|
|
Branch
profit tax
|
(346)
|
60
|
–
|
(286)
|
|
Unrealised
gain/loss on securities carried at fair value through statement of profit and
loss/OCI
|
(27)
|
(2)
|
(256)
|
(285)
|
|
Others
|
185
|
52
|
–
|
237
|
|
Net deferred tax assets / (liabilities)
|
2,164
|
230
|
(261)
|
2,133
|
|
Gross deferred tax assets and liabilities are as follows:
(Rs. crores)
|
|
As at March 31, 2017
|
Assets
|
Liabilities
|
Net
|
|
Deferred tax assets/
(liabilities) in relation to:
|
|
|
|
|
Property,
plant and equipment and Intangible assets
|
(56)
|
(28)
|
(84)
|
|
Provision
for employee benefits
|
296
|
–
|
296
|
|
Cash
flow hedges
|
(12)
|
–
|
(12)
|
|
Receivables,
loans and advances
|
205
|
–
|
205
|
|
MAT
credit entitlement
|
2,062
|
–
|
2,062
|
|
Branch
profit tax
|
–
|
(286)
|
(286)
|
|
Unrealised
gain/loss on securities carried at fair value through statement of profit and
loss/OCI
|
(285)
|
–
|
(285)
|
|
Others
|
237
|
–
|
237
|
|
Net deferred tax assets/
(liabilities)
|
2,447
|
(314)
|
2,133
|
Significant components of net deferred tax assets and
liabilities for the year ended March 31, 2016 are as follows: (not
reproduced as similar to 31-3-2017)
Under
the Indian Income Tax Act, 1961, the Company is liable to pay Minimum Alternate
Tax in the tax holiday period. MAT paid can be carried forward for a period of
15 years and can be set off against the future tax liabilities. MAT is
recognised as a deferred tax asset only when the asset can be measured reliably
and it is probable that the future economic benefit associated with the asset
will be realised. Accordingly, the Company has recognised a deferred tax asset
of Rs. 2,062 crores and has not recognised a deferred tax asset of Rs. 1,108
crores as at March 31, 2017.
The
Company has ongoing disputes with Income Tax authorities relating to tax
treatment of certain items. These mainly include disallowed expenses, tax
treatment of certain expenses claimed by the Company as deductions, and
computation of, or eligibility of, certain tax incentives or allowances. As at
March 31, 2017, the Company has contingent liability in respect of demands from
direct tax authorities in India, which are being contested by the Company on
appeal amounting Rs. 2,688 crores. In respect of tax contingencies of Rs. 318
crores, not included above, the Company is entitled to an indemnification from
the seller of TCS e-Serve Limited.
The
Company periodically receives notices and inquiries from income tax authorities
related to the Company’s operations in the jurisdictions it operates in. The
Company has evaluated these notices and inquiries and has concluded that any
consequent income tax claims or demands by the income tax authorities will not
succeed on ultimate resolution.
The
number of years that are subject to tax assessments varies depending on tax
jurisdiction. The major tax jurisdictions of Tata Consultancy Services Limited
include India, United States of America and United Kingdom. In India, tax filings from fiscal 2014 are
generally subject to examination by the tax authorities. In United States of
America, the federal statute of limitation applies to fiscals 2013 and earlier
and applicable state statutes of limitation vary by state. In United Kingdom,
the statute of limitation generally applies to fiscal 2014 and earlier.
RELIANCE INDUSTRIES LTD
The income tax expense consists of the following:
|
(Rs. crores)
|
|
|
Year Ended31st March, 2017
|
Year Ended 31st
March, 2016
|
|
TAXATION
|
|
|
|
Income tax recognised in Statement of Profit and Loss
|
|
|
|
Current
tax
|
8,333
|
7,801
|
|
Deferred
tax
|
1,019
|
831
|
|
Total income tax expenses recognised in the current year
|
9,352
|
8,632
|
|
|
|
The
income tax expenses for the year can be reconciled to the accounting profit
as follows:
|
|
Profit
before tax
|
40,777
|
36,016
|
|
Applicable
Tax Rate
|
34.608%
|
34.608%
|
|
Computed
Tax Expense
|
14,112
|
12,464
|
|
Tax
effect of :
|
|
|
|
Exempted
income
|
(2,707)
|
(5,306)
|
|
Expenses
disallowed
|
3,044
|
3,378
|
|
Additional
allowances net of MAT Credit
|
(6,116)
|
(2,735)
|
|
Current Tax Provision (A)
|
8,333
|
7,801
|
|
Incremental
Deferred Tax Liability on account of Tangible and Intangible Assets
|
1,229
|
824
|
|
Incremental
Deferred Tax Asset on account of Financial Assets and Other Items
|
(210)
|
7
|
|
Deferred tax Provision (B)
|
1,019
|
831
|
|
Tax Expenses recognised in Statement of Profit and Loss (A+B)
|
9,352
|
8,632
|
|
Effective
Tax Rate
|
22.93%
|
23.97%
|
STERLITE TECHNOLOGIES LTD
The major components of income tax expense for the years
ended 31 March 2017 and 31 March 2016 are:
|
|
31 March 2017
|
31 March 2016
|
|
(Rs. in crores)
|
(Rs. in crores)
|
|
Profit or loss section
|
|
|
|
Current Income Tax
|
|
|
|
Current income tax charge
|
51.55
|
52.77
|
|
Adjustment of tax relating to earlier
periods
|
3.22
|
(5.93)
|
|
Deferred Tax
|
|
|
|
Relating to origination and reversal of
temporary differences
|
2.47
|
19.35
|
|
Income tax expenses reported in the
statement of profit or loss
|
57.24
|
66.19
|
|
OCI Section
|
|
|
|
Deferred tax related to items recognised
in OCI during in the year:
|
|
|
|
Net (gain)/loss on revaluation of cash
flow hedges
|
0.29
|
(0.69)
|
|
Re-measurement loss defined benefit
plans
|
0.28
|
1.16
|
|
Income tax credit through OCI
|
0.57
|
0.47
|
Reconciliation of tax expense and the accounting profit
multiplied by India’s domestic tax rate for 31 March 2017 and 31 March 2016:
|
|
31 March 2017
|
31 March 2016
|
|
(Rs. in crores)
|
(Rs. in crores)
|
|
Accounting profit before income tax
|
197.98
|
247.61
|
|
At India’s statutory income tax rate of
34.61% (31 March 2016: 34.61%)
|
68.52
|
85.70
|
|
Adjustments in respect of current income
tax of previous years
|
3.22
|
(5.93)
|
|
Tax benefits under various sections of
Income tax Act
|
(16.84)
|
(15.98)
|
|
Others
|
2.35
|
2.41
|
|
At the effective income tax rate of
28.91% (31 March 2016: 26.73%)
|
57.24
|
66.19
|
|
Income tax expense reported in the
statement of profit and loss
|
57.24
|
66.19
|
RAYMONDs LIMITED
Tax expense recognized in the Statement of Profit and Loss
(Rs. in lakhs)
|
Particulars
|
Year ended
31st March, 2017
|
Year ended
31st March, 2016
|
|
Current tax
|
|
|
|
Current Tax on taxable income for the
year
|
945.42
|
2,704.59
|
|
Total current tax expense
|
945.42
|
2,704.59
|
|
|
|
|
|
Deferred tax
|
|
|
|
Deferred tax charge/(credit)
|
(559.87)
|
3,121.19
|
|
MAT Credit (taken)/utilized
|
925.89
|
(1,961.21)
|
|
|
|
|
|
Total deferred income tax
expense/(benefit)
|
366.02
|
1,159.98
|
|
|
|
|
|
Tax in respect of earlier years
|
15.20
|
–
|
|
Total income tax expense
|
1,326.64
|
3,864.57
|
Reconciliation of the income tax expenses to the amount
computed by applying the statutory income tax rate to the profit before income
taxes is summarized below:
(Rs in lakhs)
|
Particulars
|
Year ended
31st March, 2017
|
Year ended
31st March, 2016
|
|
Enacted income tax rate in India
applicable to the Company
|
34.608%
|
34.608%
|
|
Profit before tax
|
4,709.47
|
11,239.84
|
|
Current
tax expenses on Profit before tax expenses at the enacted income tax rate in
India
|
1,629.85
|
3,889.88
|
|
|
|
|
|
Tax effect of the amounts which are not
deductible/(taxable) in calculating taxable income
|
|
|
|
Permanent Disallowances
|
167.85
|
363.38
|
|
Deduction under section 24 of the Income
Tax Act
|
(42.62)
|
(52.14)
|
|
Interest income from Joint Venture on
liability element of compound financial instrument
|
(233.06)
|
(210.00)
|
|
Tax in respect of earlier years
|
15.20
|
–
|
|
Income exempted from income taxes
|
(273.04)
|
(91.24)
|
|
Other items
|
62.46
|
(35.31)
|
|
Total income tax expense/(credit)
|
1,326.64
|
3,864.57
|
Consequent to reconciliation items shown above, the
effective tax rate is 28.17% (2015-16: 34.38%).
Significant Estimates: In calculation of tax expense
for the current year and earlier years, the group has disallowed certain
expenditure pertaining to exempt income based on previous tax assessments,
matter is pending before various tax authorities.
IDEA CELLULAR LTD
Tax Reconciliation
(a) Income Tax Expense
Rs.
Mn
|
Particulars
|
For the year
ended
March 31, 2017
|
For the year
ended
March 31, 2016
|
|
Current
Tax
|
|
|
|
Current
Tax on profits for the year
|
–
|
8,621.82
|
|
Total Current Tax Expense (A)
|
–
|
8,621.82
|
|
Deferred
Tax
|
|
|
|
Relating
to addition & reversal of temporary differences
|
(4,825.95)
|
5,623.81
|
|
Relating
to effect of previously unrecognised tax credits, no recorded
|
(1,053.33)
|
–
|
|
Total Deferred Tax Expense (B)
|
(5,879.28)
|
5,623.81
|
|
Income Tax Expense (A+B)
|
(5,879.28)
|
14,245.63
|
|
Income tax impact of re-measurement gains/losses on defined
benefit plans taken to other comprehensive income
|
(17.13)
|
(71.11)
|
(b) Reconciliation of average effective tax rate
and applicable tax rate
|
Rs. Mn
|
|
Particulars
|
For the year ended
March 31, 2017
|
For the year
ended
March 31, 2016
|
|
Profit
/ (Loss) from continuing operation before Income tax expense
|
(14,190.03)
|
40,708.51
|
|
Applicable Tax Rate
|
34.61%
|
34.61%
|
|
Increase
/ reduction in taxes on account of:
|
|
|
|
Effect
of unrecognised deductible temporary differences
|
–
|
0.25%
|
|
Effect
of previously unrecognised tax credits, now recorded
|
7.42%
|
–
|
|
Effects
of expenses that are not deductible in determining the taxable profits
|
(0.64)%
|
0.24%
|
|
Other
Items
|
0.04%
|
(0.11)%
|
|
Effective Tax Rate
|
41.43%
|
34.99%
|
(c) Deferred tax assets are recognised to the
extent that it is probable that taxable profit will be against which the
deductible temporary differences, carry forward of unabsorbed depreciation and
tax losses can be utilised. Accordingly,
in view of uncertainty the Company has not recognized deferred tax assets in
respect of temporary differences arising out of effects of assessments and
unused tax losses/credits of Rs. 4,612.09 Mn, Rs. 3,738.82 Mn, and Rs. 3,442.47
Mn. as of March 31, 2017, March 31, 2016
and April 1, 2015 respectively.
ASIAN PAINTS LTD
|
( Rs. in Crores)
|
|
NOTE
18: INCOME TAXES
|
Year 2016-17
|
Year 2015-16
|
|
A.
|
The
major components of income tax expense for the year are as under:
|
|
|
|
(i)
|
Income
tax recognised in the Statement of Profit and Loss
Current
tax
|
|
|
|
|
In
respect of current year
|
817.22
|
743.74
|
|
|
Adjustments
in respect of previous year
|
(3.60)
|
(3.33)
|
|
|
Deferred
tax:
|
|
|
|
|
In
respect of current year
|
41.33
|
39.88
|
|
|
Income
tax expense recognised in the Statement of Profit and Loss
|
854.95
|
780.29
|
|
(ii)
|
Income
tax expense recognised in OCI
|
|
|
|
|
Deferred
tax:
|
|
|
|
|
Deferred
tax benefit on fair value gain on investments in debt instruments through OCI
|
0.17
|
0.34
|
|
|
Deferred
tax expense on re-measurements of defined benefit plans
|
(2.84)
|
(0.91)
|
|
|
Income
tax expense recognised in OCI
|
(2.67)
|
(0.57)
|
|
B
|
Reconciliation
of tax expense and the accounting profit for the year is as under:
|
|
|
|
Profit
before tax
|
2,658.05
|
2,403.10
|
|
Income
tax expense calculated at 34.608%
|
919.90
|
831.67
|
|
Tax
effect on non-deductible expenses
|
22.62
|
38.81
|
|
Incentive
tax credits
|
(34.70)
|
(46.23)
|
|
Effect
of Income which is taxed at special rates
|
(19.70)
|
(14.12)
|
|
Effect
of Income that is exempted from tax
|
(26.66)
|
(24.26)
|
|
Others
|
(2.91)
|
(2.25)
|
|
Total
|
858.55
|
783.62
|
|
Adjustments
in respect of current income tax of previous year
|
(3.60)
|
(3.33)
|
|
Tax
expense as per
Statement of Profit and Loss
|
854.95
|
780.29
|
The Company has the following unused tax losses which arose
on incurrence of capital losses under the Income Tax Act, 1961, for which no
deferred tax asset has been recognized in the Balance Sheet.
|
(Rs.
in Crores)
|
|
Financial Year
|
As at 31.03.2017
|
Expiry Date
|
As at 31.03.2016
|
Expiry Date
|
|
2009-10
|
–
|
–
|
3.73
|
31st March, 2019
|
|
2011-12
|
1.07
|
31st March, 2021
|
9.93
|
31st March, 2021
|
|
2013-14
|
2.03
|
31st March, 2023
|
2.03
|
31st March, 2023
|
|
2014-15
|
8.64
|
31st March, 2024
|
8.64
|
31st March, 2024
|
|
TOTAL
|
11.74
|
|
24.33
|
|
