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Deferred tax liabilities

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Deepak (Querist)
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12 August 2011 what do you mean by deferred tax liability and what is it acoounting treatment. how it is different from tds.
pls. also explain the accounting treatment of tds.
what is treatment of advance tax.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 August 2011 Deferred tax liability is the difference of taxation between the profit as per books and profit as per income tax. this difference tax need to be debit/credit to profit&loss account and create the deferred tax asset or liability

TDS need to be credited when we deducted from party and while making payment need to be debited the TDS account and bank will be credited
Advance tax need to be debited as current assets and while assessment the same will be adjusted with actual income tax

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