Defferd Tax query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2010 Please solve my problem, Profit from the business is 10000 & Depreciation as per Co. Act is 4000/- and as per IT act 2000. Due to this effect the tax will be calculated on 8000/-(10000-4000+2000) and DTA will be 618/-
My query is which amount will go to Balance sheet 2000 or 618 on liability side
Kindly some one inform me full because I ma very confuse about it and its process.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 September 2010 Since depreciation as per books is more deferred tax asset will be made and not DTL and in the balance sheet only the tax effect of the difference goes so only Rs. 618/- will go in the Balance sheet assets side.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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10 September 2010 Net profit from Business == 10000
Add : Dep as per company act = 4000
Less : Dep as per income tax act = 2000
Taxable profit will be = 12000

Now you have to pay tax on Rs. 12000
i.e you have to make Deffered tax Asset for tax 2000*30.09% i.e 618.

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