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AS22

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2010 Dear Experts

Are the following eligible for DTA calculation;
1) Provision for Gratuity
2) Provision for bad debts
3) Sundry balances written off
4) TDS Payable( DUE B4 fILING OF RETURN)
5) ESI, PF , SERVICE TAX PAYABLE( DUE B4 fILING OF RETURN)
6) Current loss.

And hw to deal in the situation in point no 4, 5 & 6 above in the year the tax are paid, and there is pofit?

Plz Reply Asap

Thnx in advance.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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05 October 2010 1, 2 are directly eligible for DTA. where as 3rd one is a grey area which some cases say it is allowed and some cases say it is not allowed in IT i.e. permanent differences. Hence, it is not eligible for DTA. Current loss is eligible if the entity is expected to generate sufficent taxable income in future years. This is a judgment area. In case of ESI, PF Empr Contr, Service tax, if they are paid within due date of filing return or date of filing return, they are allowed. In case of Emp'ee cont to PF, the same will be permnanently disallowed as per IT. hence no DTA.

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