What is deffered tax liability
This query is : Resolved
B SRINIVAS
(Querist)
24 October 2011
Dear Sir Please tell me what is deferred tax liability for the below mentioned figures for A.Y 2010-11
Profit as per P&L A/c - 41875507
Add Depreciation
Donations etc... - 14899002
Less Depreciation
As per I T - 9413800
Taxable Income - 47360709
Profit as per P&L A/c - 41875507
Add Depreciation
Donations etc... - 14899002
Less Depreciation
As per I T - 9413800
Taxable Income - 47360709
CA Neha Jain
(Expert)
25 October 2011
Deferred tax asset/liability will arise on account of difference in the depreciation.
P&L method -
If depreciation as per books higher than tax - DTA
If depreciation as per books lower than tax - DTL
Balance sheet method -
If WDV as per books is higher than tax - DTL
If WDV as per books is lower than tax -DTA
Donations being disallowances/partial disallowances are permenant differences and will not result in deffered tax.
P&L method -
If depreciation as per books higher than tax - DTA
If depreciation as per books lower than tax - DTL
Balance sheet method -
If WDV as per books is higher than tax - DTL
If WDV as per books is lower than tax -DTA
Donations being disallowances/partial disallowances are permenant differences and will not result in deffered tax.
shakuntala chhangani
(Expert)
30 October 2011
My dear friend u have to separately mention the amount of depreciation and donations. It seems that under IT Act, except depreciation, nothing is deductible (Donations etc.). so these will be considered as permanent differences and AS 22 will not be applicable on it.
If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset.
If u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset.
If u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
shakuntala chhangani
(Expert)
30 October 2011
My dear friend u have to separately mention the amount of depreciation and donations. It seems that under IT Act, except depreciation, nothing is deductible (Donations etc.). so these will be considered as permanent differences and AS 22 will not be applicable on it.
If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset.
If u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset.
If u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
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