06 July 2008
1st year: Profit as per books:Rs.9715 depreciation as per books:72740 dep as per IT act:294324 diff is 221584 deferred tax liability @30.99% - 68669 2nd year: DTL opening balance;68669 profit as per book:10054 dep as per books:72740 dep as per IT act:254355 diff:181615 DTL@30.99% 56282/- DTL Closing balance- 124951
we will generally debit p/l a/c &credit DTL a/c in the year of OTD ,from which year we will write back the DTL &how much amount?i.e., what is the year of RTD?
07 July 2008
The reversal process or the write back of DTL will start from the year where the depreciation as per IT is less in comparision to the same as per Co.Act.