IND AS 12

IND AS 12 says deferred tax liability will arise when the carrying value of the asset is greater than its tax base.



For eg





Plant and equipment Carrying V    Tax base

                                                10             7       



I assumed it sir as carrying value means summation of depreciation to be provided in future years. Let us assume 10 % rate of deprecIn this year income will increase becoz of lesser depreciation income will increase and it will result in creation of deferred tax asset