Ratio
This query is : Resolved
20 November 2009
Can we consider Defferred Tax (Credit balance)as Equity for the purpose of calculating Debt Equity Ratio?
20 November 2009
i think DTL not to be consider for calculation of Debt Equity Ratio.
20 November 2009
Deffered tax Liability is simply a defferment of tax liability (i.e. save tax now & pay it later). Therefore, It should not form the part of Equity for the purposes of D/E ratio. Further, you may refer to annual report of Tata Steel also (Audited by Deloitte Haskins & Sells) for the Yr 2008-09 (Page 197)where equity is taken as only Share Cap + Res & Surplus - Misc Exp, irrespective of DTL standing in Balance Sheet.
20 November 2009
Hi again Mala, the answer is no as from accounting view point, it is liability which has already accrued but not yet paid. it is a liability and not equity. regards, CA Shakuntala Chhangani
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
