09 June 2011
How do we present the DTA/DTL in Balance sheet. suppose we have DTL coming in B/s at Rs5000/- this year the revised DTL should only be Rs 4000/- now how do we deal with this. relevant figures are Depreciation as per Co. law 200000 and as per IT act is 212950 and tax rate being 30.9%. last year the DTL was Rs.5000 in B/s
Also please suggest how do we show this info in the notes to accounts? do we segregate the DTA/DTL or Show a Net DTA/DTL?
Also what r the methods of calculation of DTA/DTL? i read sumthing about a liability method what is it?
09 June 2011
DTA or DTL as on the date of Balance Sheet is to be shown thereat. In case of DTL in the sources of Fund after Loan Funds and in case of DTA after Investments and above Current Assets, Loans and Advances. Any difference between Opening balance and Closing balance is to be shown in P&L a/c under Provisions for Taxation under the category Deferred Tax.
In the Notes to accounts, details of opening balance, charge or credit during the year and closing balance for both years are to be furnished.
12 June 2011
The fundamental concept behind DTA & DTL is establishing a uniform system of providing tax provison in profit loss account....if you minutely check the Provison for tax debited in PL account and add with this the Deffered Tax debited or deduct if it is credited as the case may be you find that total result will be tax on accounting income instead of tax on taxable income as per IT ACT...it works please check
CAclubindia
