International BusinessRIL's Q2 tax provision may rise by Rs 263 cr: Auditors
Corporate giant Reliance Industries (RIL) today said its auditors have pointed out a possible increase of Rs 263 crore in its current tax provisions for quarter ended June 2009 due to the budgetary proposals of the central government.
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Noting that provisioning for current tax was based on proposals in the Finance Bill (No.2) 2009, the auditors said in their review report for April-June quarter that "this has the effect of increasing provision for current tax for quarter by Rs 263 crore."
Separately, auditors for Reliance Petroleum (RPL) said in their review report for the same quarter that current tax provisioning for the company may decline by Rs 27 lakh because of the Finance Bill proposals.
The impact on RPL"s tax provision would be due to discontinuance of provision for Fringe Benefit Tax (FBT) as proposed by the Finance Bill (No.2), 2009.
A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit.