New Delhi [India], Feb 7 (ANI): Indian Railway Finance Corporation (IRFC) can now raise additional debt of more than Rs 63,000 crore rupees, following the government exemption from the ambit of an Indian Accounting Standard, pertaining to deferred tax liability.
The Ministry of Corporate Affairs has exempted certain class of government companies that are notified as public financial institution under the Companies Act and those registered as Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI), among others, from following Accounting Standard-22 for seven years.
The particular standard relates to recognition of provision for deferred tax.
The exemption is going to largely benefit IRFC, part of the railway ministry which helps in raising predominant portion of the extra budgetary resources through financial leasing model, the notification from corporate affairs ministry said. (ANI)