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Deferred tax calculation

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BIKASH AGARWAL

ASSISTANT CS

89 Points Posted on 31 August 2012

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?

Replies (4)

Guest

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.

CA. Subhash Dangi

Chartered Accountant

1784 Points Posted on 31 August 2012

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.

vikash rathi

Chartered Accountant

787 Points Posted on 31 August 2012

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.

aayush

studying

25 Points Posted on 28 September 2012

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%