Caclulation of deffered tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 March 2016
Dear Experts,
Assume we have purchase the car Rs. 1 lacs and useful life is 10 year, then dep. As company act. Is 100000 less 5000 as 5% residual value, 95000/10, 9500 per year however as per income tax 15% dep. Is 15000 in this case query.1) weather deffered tax liability or deffered tax assets would be created..2) what would be accounting entry for the same..3) how it will reverse in subsequent year..
Regard
Manoj Gupta
Assume we have purchase the car Rs. 1 lacs and useful life is 10 year, then dep. As company act. Is 100000 less 5000 as 5% residual value, 95000/10, 9500 per year however as per income tax 15% dep. Is 15000 in this case query.1) weather deffered tax liability or deffered tax assets would be created..2) what would be accounting entry for the same..3) how it will reverse in subsequent year..
Regard
Manoj Gupta
25 March 2016
ABOVE EXAMPLE THERE WILL BE DEFFERED TAX LIABILITY
YOU CAN DEBIT P&L A/C dr
CREDIT DEFFERED TAX LIABILITY cr
YOU CAN DEBIT P&L A/C dr
CREDIT DEFFERED TAX LIABILITY cr
25 March 2016
1. Deferred tax liability should be booked.
2. Deferred tax Dr 3090
To Deferred tax liability 3090
(Being DTL @ 30.90% on timing difference)
3. From 8th year on wards reversal begins because DTL will change to DTA.
2. Deferred tax Dr 3090
To Deferred tax liability 3090
(Being DTL @ 30.90% on timing difference)
3. From 8th year on wards reversal begins because DTL will change to DTA.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Supply through E-commerce Operators
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Rent lease agreement
- Relief u/s Section 89
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- REGARDING SECTION 44AE
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Loan by Partnership Firm
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
