IN CASE OF COMPANIES PAYING MAT DUE TO TAX HOLIDAY DTA OR DTL NEEDS TO BE CREATED OR NOT. DTA OR DTL IS BASED ON CORPORATE TAX RATE. EVEN WHEN WE PAY MAT FOR THE DIFFERENCE OF DEP RATE BETWEEN COMPANIES ACT AND IT ACT DTA OR DTL IS TO BE CREATED OR NOT. PLS CLARIFY .
Dear N.Sivaraj,
As per AS 22, DTA/DTL IS TO BE CREATED IGNORING THE PROVISIONS U/S 115 JB...i:e even if the co is paying tax as per 115 JB DTA/DTL will be computed based on the IT Rates for corporates i:e @ 30%
During the period of tax holiday there is some working as per A.S 22. In short if the DTA / DTL reverse during the holiday period then no need to provide DTL/DTA. However go through the standard for detail
SMJ global advisors pvt ltd
New Delhi
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