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
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Regarding appeal to GSTAT
- Value of property in capital gain
- Copyright software
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- Transporter Declaration form
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
