18 May 2009
please guide me regarding calculation of Deferred tax. Following are the details. Depriciation as per co. act = 22223 Depriciation as per IT act = 94078 Provision for leave salary = 194673 Provision for doubtful debts = 20186 Prepaid expenses = 14102 Thanks
18 May 2009
dIFFERENCE OF INCOME TAX DEP & COMP. ACT DEPRECIATION WILL ALONE QAULIFY FOR DEFERRED TAX COMPUTATION. hENCE 71855*33.99% =24424 NEEDS TO BE CREATED AS DEFERRED TAX LIABILITY.
ALL OTHER ITEMS WILL QUALIFY FOR DEFERED TAX ASSETS , WHICH WE NEED NOT ACCOUNT IT FOR ON PRUDENCE BASIS
18 May 2009
Depreciation as per Co. Act - 22223/- Provision for leave salary - 194673/- Provision for doubtful debts - 20186/- Less: Depreciation as per I.T Act - 94078/-
Difference: 143004/-
Accounting Profit is > Income Tax Profit.
Hence deferred tax asset will be created of (143004*33.99%)-48607/-.
If the taxable income of the company is less than 1 Crore, the tax rate will be 30.90% and calculation will be done accordingly. Prepaid expenses is of no relevance.
CAclubindia
