Deferred tax

This query is : Resolved

Arun Kumar. G (Querist)
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27 November 2012 Dear Experts,

We have provisioned Rs.25 lakhs as Deferred Tax liablity for the year ended Mar 12.

I need a clarification on the below,

1. Is deferred Tax liablity will considered as current liablity.

2. Wheather Deferred Tax charged in P & L is payable or it can be adjusted against future profits

Thanks in Advance.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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27 November 2012 1.Guidance Note on the Revised Schedule VI requires deferred tax assets / liabilities
to be classified as non-current.

2.Deferred tax charged to pnl is not payable in the current year but is deferred for future years' tax payment.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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27 November 2012 Deferred tax liabilities (net of the deferred tax assets, if any, in
accordance with paragraph 29 of AS-22) is disclosed on the face of the balance sheet separately under the head ‘Non-current Liabilities’ after the subhead ‘Long-term borrowings'.

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Arun Kumar. G

Arun Kumar. G (Querist)
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27 November 2012 Thank you Experts

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