Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Deffered tax

PRIYANKA (accountant) (77 Points)

25 February 2014

( 11-12)

(10-11) DEFFERED TAX ASSET
363,550    BALANCE - 1.4.2011 265,369
(98,181)   ADD : W/BACK DURING THE YEAR                    198,187    463,556

( 12-13 )

DEFERRED TAX LIABILITY
WDV AS PER COMPANIES ACT       150,987,502
WDV AS PER I-TAX 27,521,846
DIFFERENCE 23,465,656
I-TAX @ 30% 7,039,697
SURCHARGE @ 5% 351984.84
7391681.64
ED CESS @ 3% 221,750
7,261,447
PRESENT DEFFERED TAX LIABILITY       363,550
TO BE W/BACK 7,624,997

Represent in P & L credit Side by deffered tax = 7,21 062

Please Clarify me the above......................

Priyanka

Reply
Follow
Share

11 Replies

pratik (CA) (1186 Points)
Replied 25 February 2014

I think defered tax liability should be 463,556 at end for considering write back..

PRIYANKA (accountant) (77 Points)
Replied 25 February 2014

but why they represent in P & L A/c =7,21 062

please help me ......... & clarify all the above equation please......

i have not understand better....... please....

priyanka

pratik (CA) (1186 Points)
Replied 25 February 2014

There may be some additional details in question u need to provide

there two difference for Defferred tax liablity timing difference and permanent difference

Kindly provide question thn ans can be justified.....

PRIYANKA (accountant) (77 Points)
Replied 25 February 2014

I have contain only this information .........

this information is not sufficient for justification ?

but please give mi some small justification about this.......

priyanka

pratik (CA) (1186 Points)
Replied 25 February 2014

Out of total 7,261,447, only 721062 will be relating to timing difference so it has charged to P&L. Rest will be permanent difference.

Try to understand the concept rather than looking at solution/ presentation..

PRIYANKA (accountant) (77 Points)
Replied 25 February 2014

Please explain me the concept of Defferred tax liablity timing difference and permanent
difference..................?

with good example...........

priyanka

pratik (CA) (1186 Points)
Replied 25 February 2014

i found link on caclubindia

hope this helpful

/articles/as-22-accounting-for-taxes-on-income-brief-note-7361.asp#.Uww6kbnzuIU

PRIYANKA (accountant) (77 Points)
Replied 25 February 2014

No Yar Not Solve.....

p & l debit side p & l credit side

total = 299543560.73 total = 305108901.45

net profit = 6286402.72 Differed Tax = 721062

now explain me what is time diffrence & permanent Diffrence ? pleas refer my 1 st quary

priyanka

PRIYANKA (accountant) (77 Points)
Replied 26 February 2014

Pleae Explain Me Yar.............

Priyanka.........

MOHIT BEDI (Working as Audit Assistant) (41 Points)
Replied 26 February 2014

Timimg differences are the items in computation of income as per IT Act, 1961 which are capable of reversal in future years. Ex-Depreciation as per Companies act and Depreciation as per IT Act.

Say, Dep as per Comp Act is Rs.1,00,000 and Dep as per IT Act is Rs.1,50,000 now the IT Deptt will allow the dep as per IT Act i.e Rs.1,50,000 (difference is due to the difference in rates of depreciation under Comp Act and IT Act). Now this excess dep allowed as per IT Act will get reversed in future years when asset will depreciate on higher amount under comp act(bcoz dep is lower at present under Comp Act) and lower amount in IT Act(bcoz dep is higher at present under IT Act)

Whereas Permanent Difference are the items in computation of income as per IT Act, 1961 which are not capable of reversal in future years. Ex-Scientific research expenditure

pratik (CA) (1186 Points)
Replied 26 February 2014

Originally posted by : PRIYANKA
	No Yar Not Solve..... p & l debit side p & l credit side total = 299543560.73 total = 305108901.45 net profit = 6286402.72 Differed Tax = 721062 now explain me what is time diffrence & permanent Diffrence ? pleas refer my 1 st quary priyanka