Deferred tax asset

Hi Guys

My company is Unabsorbed losses before depreciation of Rs.9 Crores & Unabsorbed depreciation of Rs. 10 Lakhs in previous 3 years & in this fourth year there is profit of Rs.40 lakh.There is virtual certainty.Now can anybody tell me that DTA is to be created on both Unabsorbed depreciation or unabsorbed losses? Pls help

Replies (3)

dear suchint,

yes deffered tax assets is to be created for both the above. but for the fourth year a potion of the DTA will be written off as there is profit of 40 lacs.

 

cheers

 

ganesh agarwala

 

But it is lesser out of Unabsorbed depreciation or unabsorbed losses

dear suchint,

please clarify your positin....

let me explain as per para 17 of As-21 you should have virtual certainity supporting convincing evidence that there will be adequate future taxable income to set off your DTA. then only DTA can be booked.

 

regards

ganesh agarwala

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