Mat - deffered tax liablity

ITR 512 views 1 replies

professional

517 Points Joined January 2009

Hello Everyone,

If a Pvt ltd company as Per income tax Law there is loss & As per Companies act there is a profit of Rs.1 Lakh which is same as of Book Profit .

Please Tell me the Accounting Entries of the above.

2.Do we need to create the Deffered Tax Liablity as the Depreciation is follows:-

As per income Tax Act	692798
Companies Act	414617

Please Tell me the Accounting Entries of the above.

Please Reply soon

Replies (1)

a/c

22 Points Joined June 2010

1.)pass entries for DTL

Defered tax a/c Dr 278181

Defered Tax Liability Cr 278181

2.)For passing necessary entries for MAT (if enterprise is expecting normal profit in future)

profit and loss a/c Dr 100000

MAT a/c Cr 100000

(make provision of Mat )

MAT a/c Dr 100000

MAT credit a/c Dr 100000

(pay mat and consider in balance sheet as mat credit under current asset.)

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