Deferred tax
This query is : Resolved
08 August 2011
My client has not provided for DT, this will be the first time applicability of AS22. For the current year there is DTL, and for the prior years for which no provision of DT was made, there is DTA. DT is arising only due to depreciation and no other item. As per AS22 on the first time applicability DTA/DTL should be charged or credited to revenue reserve. My question is how would you treat the DTA in the above case. Where do we show it? How do we disclose it? The company has substantial General reserve and PL balance. Thanks in advance for your help.
09 August 2011
Since none responded to this query i tried to resolve it by myself as self help is best help. The accumulated DTA can be set off with the DTL and the balance should appear at the face of the PL and Balance Sheet. The details should be disclosed in the notes to accounts.
09 August 2011
Providing DTL does not affect your tax liability for the current year or previous years. Now you can do the following
1) For Previous years deduct it from Reserves & Surplus and put a note to the accounts
2) For Current Year provide in the P & L a/c
1) For Previous years deduct it from Reserves & Surplus and put a note to the accounts
2) For Current Year provide in the P & L a/c
09 August 2011
For Previous years it was DTA, so it will have to be summed up with R&S. R & S is nothing but PL balance in my case. so what i am doing is setting of DTA accumulated with DTL current year. The net figure is being shown in the P&L. Keeping DTA requires reasonable certainty. is my approach correct?
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
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- 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
- 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
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
