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DTL & DTA

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Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2010 Kinndly rectify me -: As per I T act Dep. Is 5000/- and as per company act 10000/- if my profit is 20000 then I have to pay the tax on Rs. 25000. & Deffered Tax liability will be 1545/- and this amount will be shown in the balance sheet Cr. Side.
2} if as per IT dep. is 10000/- and Companies act 5000/- then I have to pay the tax on 15000/- and Deffered tax assest will be 1545/- and it will be shown on Dr. side of Balance sheet

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 September 2010 1) Timing difference on account of difference in depreciation is Rs. 5,000/-. Here IT depreciation is less which means you are paying more tax. So DTA has to be created for Rs. 5,000/- only. Entry is
Deferred tax asset a/c Dr xxxx - show in B/S
To deferred tax a/c xxxx - show in P&L
2) Position is just reverse.

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