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deffered tax

Ca. Alok Gupta (CA Job) (172 Points)

27 October 2007

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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10 Replies

CA. Dashrath Maheshwari (TaXpert) (15090 Points)
Replied 27 October 2007

If profit in Zero then DTA will be 17772

Ca. Alok Gupta (CA Job) (172 Points)
Replied 27 October 2007

dear sir whether DTA will creat on loss as per income tax act of rs 13200/ or not

Miss Komal Mantri (Chartered Accountant ) (1974 Points)
Replied 27 October 2007

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....

Sathish Karunakaran (ACA) (614 Points)
Replied 27 October 2007

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.

(Guest)

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

Srivathsan Rangarajan (Chartered Accountant) (66 Points)
Replied 28 October 2007

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.

Miss Komal Mantri (Chartered Accountant ) (1974 Points)
Replied 29 October 2007

yes ... if virtual certainity exists then DTA can be created on the carry forward loss of Rs 13200/-

Vijay K. Agrawal (Service) (608 Points)
Replied 29 October 2007

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)

Mool Chand Vyas (Accountant) (63 Points)
Replied 13 June 2009

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

Mool Chand Vyas (Accountant) (63 Points)
Replied 13 June 2009

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