DTL.....................

we are the manufacturer and exporter, please advise whether TDS applicable on Air freight charges paid to forwarder.

Thanks

DTL/DTA is always computed on the Timing Differences arising between Accounting Income and Taxable Income....

Be it first year or thereafter DTL/DTA will always be computed on difference between the Dep. as per books and Income Tax act which creates the difference in Book profit and Taxable Profit.

Hi Ashish / Kaushal,

If there is no sale of fixed asset happens in the year or past years, DTL/DTA calculated based on the Depreciation or WDV will provide us the same results.

But Accounting entries will be entirely different in the two cases. Pls refer to the attached excel sheet.  Net effect of the entries under both made will be same.  However, difference should be noted.

Now, suppose a sale of fixed asset happens, then under the Income Tax Depreciation sales proceeds would be deducted from the WDV.

But in Corporate Depreciation, WDV would be entirely knocked off from the schedule itself.

Under this circumstances, DTA/DTL calculated based on Depreciation alone and calculation based on WDV will significantly differ.

This difference is due to the treatment of sales proceeds in Income Tax Depreciation and knocking off the WDV of sold asset in Corporate Depreciation.

As for as my experience, it is ADVISABLE to calculate Depreciation based WDV Method to avoid confusion.

Regards,

gurusanthanam

Dear Guru Ji,

I have clacuated DTA and DTL on WDV since 2006 now a learned person rejecting my veiws that i am wrong.

While he is a Advocate not a CA and nothing read in his class or carrier Pls reply to him on  for WDV calcualtions on his email given under or cell no.9811236791 Mr. Ram Chandra Advocate

Pls sent these things to rccindia @ hotmail.com

as this person is not respecting CA's

I request to all CA Friends and collegues Pls sent material or Annual Reports that contains calculation of deferred tax on  WDV deifferences.

if can you email for the same at rccindia @ hotmail.com to a proudy person