Airtel 2012 Annual Report Download - page 190

188
BHARTI AIRTEL ANNUAL REPORT 2011-12
During the years ended March 31, 2012 and March 31, 2011, the Company recognised additional income tax charge of ` 70 Mn
and ` 2,980 Mn under ‘current income tax’ and additional MAT credit of ` 70 Mn and ` 2,980 Mn under ‘deferred tax’,
respectively on account of change in effective MAT rate from 19.9305% to 20.00775% during the financial year 2011-12 and
from 16.995% to 19.9305% during the financial year 2010-11.
The reconciliation between tax expense and product of net income before tax multiplied by enacted tax rates in India is
summarized below:
Particulars Year ended Year ended
March 31, 2012 March 31, 2011
Net Income before taxes 65,183 76,782
Enacted tax rates in India 32.45% 33.22%
Computed tax expense 21,149 25,505
Increase/(reduction) in taxes on account of:
Share of losses in associates 24 19
Benefit claimed under tax holiday provisions of Income Tax Act (8,890) (19,679)
Temporary differences reversed during the tax holiday period 1,027 726
Effect of Changes in tax rate 4 (118)
Adjustment in respect to current income tax of previous years 333 142
Adjustment in respect to MAT credit of previous years (361) (345)
Deferred tax recognized in respect of previous years
(including carry forward losses) (2,798) (182)
Tax for which no credit is allowed 1,393 60
Effect of different tax rate in other countries 1,497 1,635
Losses and deductible temporary difference against which no deferred tax
asset recognised 9,504 9,052
(Income)/Expenses (net) not taxable/deductible (1,046) 484
Reversal of previously recognised Deferred tax asset -129
Others 766 362
Income tax expense recorded in the Consolidated income statement 22,602 17,790
The components that gave rise to deferred tax assets and liabilities are as follows:
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` Millions)
Particulars As of As of
March 31, 2012 March 31, 2011
Deferred Tax Asset/(Liabilities)
Provision for Impairment of Debtors & Advances 7,432 7,058
Losses available for offset against future taxable income 5,300 1,977
Employee Stock Options 1,177 1,001
License Fees 537 648
Post employment benefits and other provisions 526 380
Minimum Tax Credit 33,402 28,543
Lease Rent Equalization - Expense 4,719 3,707
Fair valuation of Derivative Instruments and unrealized exchange fluctuation 616 1,247
Accelerated depreciation for tax purposes (7,356) (8,222)
Fair valuation of intangibles/property plant & equipments on
business combination (221) 1,548
Lease Rent Equalization - Income (3,618) (2,749)
Deferred tax liability on undistributed retained earnings of foreign subsidiaries (2,961) (2,545)
Others 103 (19)
Net Deferred Tax Asset/(Liabilities) 39,656 32,574
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` Millions)