Deferred tax

Dear sir,

One private limited company incoroprated in 2002  , but they commeced their business during the financial year 2005-06 and due to loss and business down treand  they  stopped  their business for 3 years ( that is 2006-07,2007-08, and 2008-09) they have no business. after the market study and using innovative ideas they restarted their busines during the year 2009-10. Is it necessary to create Differed tax liablity /asset by them during the year 2005-06 , remaining three years they had no business. What to do with deferred tax in that years. KIndly guide me in this case

 

Replies (1)

 If You have fully closed ur company by make notice to registrar of company ,than you not require to file any deffered tax libility,but if you close only that company opertaions for three year than you have to file deffered tax libility for thats periods

 

Thanks & regards

 

Tarun

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