If co follow own dep method and dep as per tax are diff in this case dep adjusted.I have doubt in Balancesheet which dep deduct as per books or as per tax.
eg book profit 100
As per book dep-20,
As per Tax dep-30
Asset value 70.
In tax return Balancesheet what put
asset :70
dep : 20 or 30??
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.
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