Our Companies profit after depreciation before tax is Rs. 4115750/-
Dep as per Companies Act is 12475308/-
Dep as per IT Act is 17729230/-
There is a deferred tax liability arise of Rs. 1623460/-
What entries should be passed for deferred tax liability and for provisions for taxtion in the books of account
As our income as per IT Act will be negative. Should that figure will be carry forwward?
What will be the MAT provison and amount of tax?
Pass entry for deffered tax liability:
p&l Ac Dr 1623460
to Deffered tax laibility A/c 1623460
Since the book profit is nagative calculate tax as per mat provision on book profit and create provisoion for taxaion.
A. For defferred Tax liability:
| Profit & Loss Account Dr. | |||
|
To Deferred Tax Liabilty
B. For provision of Taxation: Provision for Taxation Dr. To Profit & Loss Account |
|||
Loss as per Books of accounts alone be carry forward as there is loss as per IT Act which has been considered for defferred tax liabilitya.
| Originally posted by : CA Devendra Sharma | ||
 |
Pass entry for deffered tax liability: p&l Ac Dr 1623460 to Deffered tax laibility A/c 1623460 Since the book profit is nagative calculate tax as per mat provision on book profit and create provisoion for taxaion. |
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there is a net profit as per p&l a/c of rs 35000. & there is a brought forward loss of rs 1350000. dep as per co. act 150000 & dep as per it act 2000000. what is the amt of deferred tax? tax @ 30.9%
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