Recognition of deferred tax asset/liablity- balance sheet approach
This query is : Resolved
CA Abhishek Singh
(Querist)
31 August 2023
Hello everyone,
following details are available as on 31.03.23
Cl wdv as per books : 100 cr
cl wdv as per IT acr : 92 cr
applicable tax rate : 25%. Assuming no other timing diff other than depreciation
i am stuck in computation of closing deferred tax asset/liablity
my understanding is since co has claimed higher depreciation and paid less tax going forward tax liability is going to be higher so direct tax liablity shall be created
closing value of DTL = 8 cr * 25% =2 cr
2cr should appear in balance sheet after adjusting opening balance
is my understanding correct ??
following details are available as on 31.03.23
Cl wdv as per books : 100 cr
cl wdv as per IT acr : 92 cr
applicable tax rate : 25%. Assuming no other timing diff other than depreciation
i am stuck in computation of closing deferred tax asset/liablity
my understanding is since co has claimed higher depreciation and paid less tax going forward tax liability is going to be higher so direct tax liablity shall be created
closing value of DTL = 8 cr * 25% =2 cr
2cr should appear in balance sheet after adjusting opening balance
is my understanding correct ??
CA R SEETHARAMAN
(Expert)
31 August 2023
Yes, you are right...
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