DEFERRED TAX

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PARIMAL DILIPKUMAR GOLWALA (Querist)
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08 September 2010 My query is we have a pvt. ltd. company
at the end on 31.03.2010, we have occurred loss at the above period. but actually we have paid donation amount of rs. 51000/- that's why create loss. in short, before donation net profit of rs.37572/-. and after a donation loss of rs. 13428/- and also this donation does not deduction in income tax also.
what treatment i should provide in the books of accounts for deferred tax purpose ?

isn't it true that deferred tax provision only reported in audit report not in the books of accounts ?

CA SMR

CA SMR (Expert)
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10 September 2010 This is answered as per my understanding of AS 22.More opinion is solicited.

a)If 30% is the rate of taxation,the income tax payable will be accounted for as,

Profit & Loss A/c DR 4028.40
To Current Tax A/c 4028.40

b) Accounting for Deferred Tax-This will be nil as there is loss as per the Book profits

PARIMAL DILIPKUMAR GOLWALA

PARIMAL DILIPKUMAR GOLWALA (Querist)
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10 September 2010 Thanks sir,
But is it recored in the books of accounts deferred tax assets ?

Sir please also tell me that MAT is also records in the books of accounts or only mentioned in Auditor audit report only ?

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