Where should the difference between depreciation previously charged as per Income Tax Act & depreciation under Company's Act be transferred?
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Depreciation
Replies (13)
Difference itself does not arise in accounting books since no entry has to be passed for depreciation (as per IT) in accounting books.....both amounts are carried forward separetely for their respective purposes.....only tax difference arising because of two has to provided as DTA/DTL,as the case may be.
agreed with keshav
yes agree with keshav
agree with above
| Originally posted by : keshav | ||
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Difference itself does not arise in accounting books since no entry has to be passed for depreciation (as per IT) in accounting books.....both amounts are carried forward separetely for their respective purposes.....only tax difference arising because of two has to provided as DTA/DTL,as the case may be. |
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AGREED.
I am agree with you keshav
tax difference arising because of two has to
provided as DTA/DTL as per AS-22 ,as the case maybe.
| Originally posted by : keshav | ||
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Difference itself does not arise in accounting books since no entry has to be passed for depreciation (as per IT) in accounting books.....both amounts are carried forward separetely for their respective purposes.....only tax difference arising because of two has to provided as DTA/DTL,as the case may be. |
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AGREE WITH U DEAR FRIEND..........
yes agree with keshav
DEFERRED TAX LIABILITY / DEFERRED TAX ASSETS
| Originally posted by : keshav | ||
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Difference itself does not arise in accounting books since no entry has to be passed for depreciation (as per IT) in accounting books.....both amounts are carried forward separetely for their respective purposes.....only tax difference arising because of two has to provided as DTA/DTL,as the case may be. |
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YES ABSOLUTELY RIGHT
Depreciation as per IT act is calculated basically for Statement of Income purpose and Dep provided in the book of accounts is as per the company policy which is generally company act. And no entry is to be passed in the books of accounts for the dep as per IT Act. only DTA/DTL is to be created as per AS-22
Agree with Keshav.
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