What is the DEFFERED TAX LIABILITIES/ASSETS

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Jitender

Jitender (Expert)
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15 June 2008 it is the tax effect of timing differences b/w co law & tax laws.

Jiwan singh

Jiwan singh (Querist)
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15 June 2008 Dear ALL

Please define me

What is the deffered tax liability/assets,How is accounting of that

vaibhav

vaibhav (Expert)
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16 June 2008 PL Refere AS 22. You will get detailed info on the same.

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Tarun Gupta

Tarun Gupta (Expert)
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17 June 2008 Dear pls refer AS 22 Taxes on Income for details

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 February 2012 Pl see the points given below.

1.Source:-
AS-22 deals with deferred tax.
2.Focus;-
It is based on the matching concept.
3.Reason:-
Accounting income and taxable income may differ on account of various reasons.
4.Measurement;-
The difference as aforesaid is itemized and permanent differences are eliminated. The rest is called timing difference.
5.Timing difference;-
Those differences which lead to either saving in tax or payment of tax in the current year in the manner that such saving or payment is nullified in later years.
6.Recognition;-
Deferred tax should be recognized for all timing differences subject to consideration of prudence in respect of deferred tax assets.
7.Rates;-
deferred tax is to be recognized using the tax rates that have been enacted on the balance sheet date. If not enacted can be measured on the tax laws that have been substantially enacted as on the b/s date.
8. Positioning;-
deferred tax asset/liability should be disclosed separately from current assets and current liabilities in the b/s.
9.Disclosure;-
In the notes on accounts compliance of AS 22 may be mentioned as well as the workings of the deferred tax may be given.

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