banner_ad

Deferred tax on ROU assets

508 views 1 replies
If there is any applicability of deferred tax on right of use assets.How the calculations to be done and how it shall be presented.
Replies (1)

Yes , Deferred  Tax on right  to use on asset  is  applicable ., either deferred tax asset  or  deferred  tax  liability . 

For  example  , Company  has taken an asset  for right to use  on lease   of Rs 2000000/-  for  five years , Depreciation  will be  on SLM -striate Line Method -  in equal  installment   ,and  lease  rent will  be 150000/- per Annam , interest  rate is 5% . Tax rate is 30%  . Calculation for  Deferred  Tax as  follows   . Tax department  will  not  recognize  Depreciation  because right to use as asset on lease  , and  allowed  Lease rent  as deduction   . 

                                                       As per  the books                      As per Tax department 

Right  to use an asset                      2000000                                200000

Less -Depreciation                             200000                                                               

Add- 5% Interest on lease rent                                                        100000

Less - Lease Rent                                                                            150000

                                                        --------------------                        ---------------------

                                                         1800000                                1750000

 

Difference                                        1800000 less 1750000 = 50000/- 

Tax 30% on 50000                           15000

So  15000 is  Differed  Tax Asset  .   

 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
03 May 2026
Senior Chartered Accountant

Nirmal Jain & Co

New Delhi

CA

View Details
Company
02 May 2026
Experience Audit Manager

AGGARWAL SAMIR & CO

New Delhi

CA Inter

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
01 May 2026
Chartered Accountant

Agrawal Jain & Co.

Raipur

CA

View Details
Company
27 April 2026
Senior Accountant

Jyoti K agarwal & co

Mumbai

Others

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details