Dta/dtl

Dear SriKumar,

Accounting Standard 22 taks about this issue.

Generally this deffered tax liability arises due to timing differance between income tax rule and company rule.

gneral rule is -

if this year taxable profit  is less due to such timing differance then  there arises  the deffered tax liability.

if this year taxable profit is more due to such timing differance items then there arises the deffered tax Asset.

on Analysing your case it is pointed out that IT rate of deppreciation is more hence depreciation according to IT is more than that off the books so it reduces the taxable profit. therefore here it is deffered tax libility.

your openion is correct