Hi Friends,
Kindly explain me the concept of Deferred tax. And accounting treatment for DTA, DTL.
Regards,
Swathi
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Deferred tax
Replies (3)
Kindly go through once as 22.nad then ask specific problem you...i don't think that you ca not understand the meaning of dta or dtl by just reading as 22.
Mr. Saroj, I have gone through AS-22 so many times. But practically I don't have much exposure. So, anyone who has much exposure in to this explains...it would be helpful for me.
DTA AND DTL IS CALCULATED FOR DIFFERENCE IN ACCOUNTING INCOME AND TAXABLE INCOME AS PER INCOME TAX . THE DIFFERENCE COULD BE PERMANENT AND TEMPORARY , NO DTA AND DTL IS CALCULATED FOR PERMANENT DIFFERENCE SINCE NO REVERSAL WILL OCCUR .
DIFFERENCE IN DEPRECIATION RATE IN COMPANY ACT AND INCOME TAX ACT GIVE RISE TO TEMPORARY DIFFERENCE AND HENCE DTA OR DTL HAS TO BE CALCULATED .
TOTAL TAX EXPENSE = CURRENT TAX + DEFFERRED TAX.
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