Differed tax liability

it is deferred tax liabilty or deferred tax asset?

Deffered Tax Liability means, When the net income of your company report of financial statement  is larger than the taxable income it reported to the government. else Deffered tax Assets.

eg:- If the an Asset value is Rs:10,000, depreciation as per income tax = 20%  and as per companies act = 50%. the deffered tax liability/Assets is

as per income tax = 10000*20% = 2000

as per finance statemtn = 10000*50% = 5000

so differnce = fin statement - income tax = 5000 - 2000 = 3000

find the tax rate on 3000. here is positive balance ie by income tax rate we need to pay extra tax on that year ie 3000. ie prepaid expense we treated as assets. so it is a deffered tax assets.