Deferred Tax Asset (Net) Negative/Loss in Balance Sheet

Dear Sir,

In one of the audited balance sheet CA has audited deferred tax asset net as negative i.e. loss. Company is having Profit before tax of more than 10,00,000/- but after deferred tax asset it shows in balance sheet Profit for the year in negative i.e. loss due to deferred tax asset effect. Will bank consider this as business loss and only on this ground can bank reject parry's loan proposal?  


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Replies (1)
Differed Tax is completely different from provision for tax ..

Different Tax araises due to timing difference between accounting income and Taxable income ..It can araise even company is in profits ..

You can say net deferred tax liability in your case instead of DTA negative.

You may ask your auditor to provide calculation for DTA or DTA/ DTL Ledger

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