Sir,
How to find out deferred tax liability or asset. I know that difference between w.d.v. netblock and company act net block is deferred tax liability. But how to find out deferred tax asset or liability
Y.RAMA KRISHNA (EXECUTIVE ACCOUNTS) (45 Points)
19 April 2012Sir,
How to find out deferred tax liability or asset. I know that difference between w.d.v. netblock and company act net block is deferred tax liability. But how to find out deferred tax asset or liability
Raman Aggarwal
(Expert)
(363 Points)
Replied 19 April 2012
Raman Aggarwal
(Expert)
(363 Points)
Replied 19 April 2012
IT IS DIFFERENCE BETWEEN DEPRECIATION ACCORDING TO COMPANIES ACT AND INCOME TAX ACT ( RATES DIFFERENCES)
Ajay Chahal
(ca final)
(42 Points)
Replied 19 April 2012
IT IS THE DIFFERENCE OF DEPRICIATION AS PER COMPANIES ACT AND AS PER INCOME TAX ACT. AND OTHER EXPENSES WHICH IS DISALLOWED BY THE INCOME TAX AUTHORITIES.
Regit
(CA.Final)
(320 Points)
Replied 20 April 2012
If WDV as per Companies Act is less than that as calculated under income tax act, then it means that you have claimed more depreciation under Companies Act than to be provided under Income Tax act. This inturn means that, due to this, your profits has been less than that show as calculated when IT Dep rates are taken into account. So then arises the Deferred Tax Liablity. and vice versa when WDV under IT Act is more than that of as calculated under Companies Act..
Mahavir Shah
(Chartered Accountant)
(70 Points)
Replied 20 April 2012
its not only the difference between Dep rates but it also includes setoff, disallowances...etc
CAclubindia
