Accounting of Deferred tax

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krishna (Querist)
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02 August 2010 Sir, I would like to know about how to calculate deferred tax asset/liability and its treatment during preparing profit and loss and balance sheet of companies. pls advice.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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02 August 2010 deffered tax asset calculation

As at 31.03.2010
W.D.V. of Fixed Assets as per Companies Act 46047096.32
W.D.V. of Fixed Assets as per Income Tax Act 34161902.89
Short Depreciation charged as per Companies Act 11885193.43
Deffered Tax Liabilities @ 33.99% on Depreciation 4039777

krishna

krishna (Querist)
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02 August 2010 Sir first thank for reply. but I'm literely confused between your answer and other person. The other people is giving answer through net. if IT ac depreciation more than the companies act, then it will treat as liability, but as per your above reply it shown vice versa. pls clrify.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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02 August 2010 Dear Krishna,
Please check the answar carefully.
Short depreciation charged as per company act means depreciation on it is more.
that is why deffered tax liability arises.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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02 August 2010
IN EXAMPLE GIVEN BY PYNE JI, DEFFERED TAX LIABIITY IS TO BE MADE.
BECAUSE YOU HAVE TO PAY LESS TAX NOW DUE TO LESS DEP AS PER IT ACT.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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02 August 2010 thanks Bijenderji,

krishna

krishna (Querist)
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21 September 2010 Sir, I would like to know what is the procedure of opening for Sole Proprietorship firm in Chandigarh. Basically, One of my client wants to open Placement Consultancy Services. Is Registration compulsory for him or not if yes pls let me know the procedure.

Hope for Positive Response.

Thanks & Regards,
Krishna Shukla
09915193973

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