Deffered tax

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uday singh Negi (Querist)

26 February 2013 dear sir,

when it is needed to calculate deffered tax

deffered tax is due to timing difference but when it is needed to calculate

means is their any time bound
or
it is depend upon turnover
or
it is depend upon loss and profit of company

can newly opened company also calculate deffered tax after one assessment year

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 February 2013 After one Assessment year is not the basic requirement.
.
From the very first year you have to calculate it.
.
In simplest term, Income as per Income Tax
Computation is 100000/-, whereas your books show Profit of Rs 150000/-. It may be due to the fact that you can Claimed higher Depreciation as per IT Act.
.
Assuming Tax Rate @30%.
.
30000/- is the Actual Tax Liability but as per Books the liability could have been 45000/- . Tax is being saved of Rs. 45000-30000=15000
.
Eventhough we are paying lesser tax, but as per the concept of Deffered Tax, this 15000/ saved will become payable in the future ...may be at that time when Depreciation as per IT will be lower than
as per Books (in the similar sets of circumstances). So, Rs. 15000/- is provided by debtiting P&L A/c and shown as Deferred Tax Liability.
.
Every item which is enhancing and reducing the tax liability has to be taken into account every year, and accordingly , it is accounted for.
.

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uday singh Negi

uday singh Negi (Querist)

26 February 2013 bafna sir,

in our company we are having a loss of rs. 28,64,156/- as per companies act

and loss of rs. 28,95,739/- as per income tax act

depreciation as per companies act rs. 73589/-
depreciation as per income tax act rs. 183732/-

but my auditor didn't calculate deferred tax ?

please explain why ?

uday singh Negi

uday singh Negi (Querist)

26 February 2013 in this case difference between loss as per companies act and income tax act is 31583/-

and we have refund of 86,000/-

uday singh Negi

uday singh Negi (Querist)

28 February 2013 please reply

uday singh Negi

uday singh Negi (Querist)

07 March 2013 please reply bafna sir

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