if preliminary expenses under companies act is allowed rs.66000/- and under income tax 13200/-. and during the year 2006-07 company has no income. what will DTA creat.
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deffered tax
Replies (10)
If profit in Zero then DTA will be 17772
dear sir
whether DTA will creat on loss as per income tax act
of rs 13200/ or not
DTA will be created at 30.9% of Rs66000-13200 i.e. 16315....
DTA will be created as in the coming years there is less amount to be carried forward and set off....
Sir,
here in this case DTA will be calculated as follows:
66000-13200=52800
52800*30.9%*-=16315
If taxable income exceeds 1 croe, then
52800*33.99%=17947
Check if Sec. 115JB is applicable, i.e 7.5% on book profit is higher than 30.9% on Tax profit. If it so, then DTA calculation will differ from aforesaid. Scan AS 22 for more clear picture.
MY QUESTION IS THAT TIMING DIFF IS RS.52800/- AND AS PER INCOME TAX ACT LOSS WILL BE CARRY FORWARD RS13200/-
THEN DTA WILL ALSO CREAT ON THIS CARRY FORWARD LOSS IF VIRTUAL CERTAINITY OF FUTURE INCOME
First identify the amount which will be carried forward in the income tax memo. Only for that amount DTA will be created. But this being the first year and that too the company is having a loss, I would suggest not to recognise the DTA in the absence of virtual certainty.
yes ... if virtual certainity exists then DTA can be created on the carry forward loss of Rs 13200/-
i am presuming that there as also loss as per account
if in future it is certain then create DTA on rs. 66000 at the rate 34.99 ( CY rate)
In My Balancesheet of 2006-07 Deffered tax Liabilities Balance Shown Rs.765831 and in my 2007-08 same account balance shown Rs.915422 then Balance Amount 149591 what entry I pass in the year 2006-07 and in the year 2007-08
In 2006-07 Balance Sheet Preliminary Exp. Written of Account balance Rs7800 and in the Balance Sheet of 2007-08 same account balance Rs.5200 why the balance reduce and what entry we pass for that
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