Book profit and tax profit

Book depreciation is recorded in the final statements. Then the tax depreciation is used in corporate tax calculations to find out the current tax amount as well. A differed tax consequence also arises between book and tax depreciation. Try searching ca club for articles related to corporate tax formula.

It means dep as per tax and dep as per co act are different.so in Balancesheet which dep show as per co Act or as per tax.

In balance sheet its company dep., deferred tax liability/assets as per the difference

SLM depreciation (100)-WDV Depreciation (70) x-1 = DTL (-30)