Accounting treatment of deferred tax

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vikram nagar (Querist)

09 March 2013 To,
Experts

I've a confusion regarding following situation,

Bal. of DTL as on 31.3.2012 in the books of XYZ pvt ltd is Rs.50,00,000. In the F.Y. 2012-13 Depreciation as per Co's Act 1956 is Rs. 37,00,000 and Depr. As per I.T. act is Rs. 1,65,00,000. So Amt. of DTL will be Rs.39,55,200 [(37,00,000-165,00,000)*30.9%].

So my Question regarding above situation is What will be the closing bal. of DTL?
Please solve above query and also give me accounting treatment of above.
(Assuming No Surcharge)

Thanks & Regards

Vikram Nagar
(Student)

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)

11 March 2013 There is a generation of DTL of Rs. 39.55 lacs in the current year which will be added to opening DTL balance. The closing balance would be 89.55 lacs

vikram nagar

vikram nagar (Querist)

12 March 2013 Sorry to say Mr. Suraj that i'm disagree with your answer, according to me Closing bal. of DTL should be 39.55.

My Querry is that Should i passed Accounting entry of Rs. 10.448 Lacs in DTL???

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)

12 March 2013 There is nothing to be sorry for disagreement.

Since there is a generation of DTL in current year, it is to be added to DTL standing at the beginning of the year.

vikram nagar

vikram nagar (Querist)

14 March 2013 OK
Thankyou

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