DTL

This query is : Resolved

S.Jegadeesan (Querist)
Follow

24 August 2010 Dear Sir,
I wish to clarify one doubt regarding DTL/DTA.
i.e. M/s.KPL Pvt ltd has incurred Loss as per P & L A/c for Rs. 500000 in F.Y.2009-10.Depreciation as per IT Act is Rs.70000 & as per Companies Act is Rs.45000/-.What will come i.e DTA or DTL?.This company already has incurred ubabsorbed Business for Rs.20000 & Unabsorbed depreciation for Rs.15000 which was B/f from F..Y.2008-.
Should I consider past years unaborbed loss while compute the DTL/DTA?

S.Jegadeesan

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

24 August 2010 Here there are two things to make deferred tax of.

First is of difference of depreciation as per books and IT and second of carry forward losses as per Income Tax Act.

In the first case since depreciation as per Income tax is more deferred tax liability will be made on the difference of depreciation.

For unabsorbed business loss and depreciation deferred tax asset will be made.

However making deferred tax asset is subject to that where an enterprise has unabsorbed depreciation or carry forward of losses under tax laws, deferred tax assets should be recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised and the nature of the evidence supporting the recognition of deferred tax assets should be disclosed, if an enterprise has unabsorbed depreciation or carry forward of losses under tax laws.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Hanuma Yanduri

Jai Solanki

George Innocent

Ravikumar

sandhya.v

Subscribe Now

DTL

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

CA Final

GST CONSULTANCY

Manager- Finance and Compliance

Senior Executive