Please help me in calculating the amount of tax paid in 2007, from following available info

..........................................................2007................................2006
Tax Payable.....................................327515.............................353869
Current Tax.......................................71416....................................NA
Deferred tax assets...................................0.....................................0
Deferred tax exp.................................98850...................................NA
Deferred tax liabilities........................104512................................5722
Adv Tax.............................................242082.............................231040
Tax Paid..................................................???

Amount I have calculated is 108812

Hello,

I have no clue about this.By the way which level is it?

Yes this answer is correct.

In the above question he has asked to calculate tax paid(i.e. Cash out flow in course of tax), so in the concerned calculation the deferred tax has no consequences on the amount of Tax paid, as deferred tax is having no impact on cash flows this is because it is the tool that is developed to cope with timing differences and permanent differences...

See ledger below,


==============Current Tax Expense Account=================
________________________________________________________________
b/d(Prepaid/Advance Tax) ==>231040| b/d Tax payable========>353,869
==========================>|
Tax Paid(Cash out Flow)==>108,812|Charged to P/L=========>71,416
==========================>|
c/d Tax payable ========>327,515|c/d(Prepaid/Advance Tax)==>242,082


Regards,

Muhammad Amir