Exemption to Government Companies under section 129(6) of Companies Act, 2013 from recognizing Deferred Tax Assets/ Deferred Tax Liability under AS-22/Ind AS-12 - F. No. 17/32/2017-CL-V - S.O. 529(E) - Companies Law

Government Companies Exempt from Accounting Standard 22/Indian Accounting Standard 12 for Deferred Tax Assets/Liabilities u/s 129(6.

The Central Government, under Section 129(6) of the Companies Act, 2013, exempts certain government companies from applying Accounting Standard 22 or Indian Accounting Standard 12 concerning deferred tax assets or liabilities. Effective from April 1, 2017, this exemption applies to government companies that are public financial institutions, non-banking financial companies registered with the Reserve Bank of India, and those engaged in infrastructure finance leasing, generating at least 75% of their revenue from business with government entities. This directive aims to serve the public interest.