How we have to show simplified tax (turnover*6%) in income statement as income tax below *** profit or as cost?

Question

Company pay simplified tax (turnover*6%) as per local legislation and not pay corporate tax. How we have to show simplified tax in the income statement as income tax below *** profit or as cost?

Answer 1

Its depends weather simplified tax is calculated on income or profit basis, if yes then it would be shown in income statement after profit before tax other wise this would be shown as expense in income statement.