Deffered tax
This query is : Open
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
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
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.
.
.
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.
.
Message likes :
1 times
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 ?
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 ?
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/-
and we have refund of 86,000/-
28 February 2013
please reply
07 March 2013
please reply bafna sir
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
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- TAN for Partnership
- Loan by Partnership Firm
- TDS related Query_Liquidated Damages
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Specified Profession
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- 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
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
