Easy Office
LCI Learning

MAT and Deferred tax.

This query is : Resolved 
Profile Image

Guest

Profile Image

Guest (Querist)
01 March 2011 Hi everybody,
Thanks for answering in advance.

I wish to understand the logic behind using normal tax rates for creating deferred tax liability.

Why not create DTL at MAT rates, since MAt is the effective current tax. Thnaks a lot
Profile Image

CA Punit

Profile Image

CA Punit (Expert)
01 March 2011 MAT is not effective current tax its the MINIMUM amount of tax that should be PAID.

Effective & Actual tax liability is at normal rates.
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
01 March 2011 It is a bench mark as specified in AS-22 for maintaining uniformity and consistency while preparing financial statements.
Upgrade to CAclubindia Pro. Subscribe Now!


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


CCI Pro
Live Budget News and Updates

Trending Online Classes

view all classess
Let's Talk Money: You've Worked Hard for It, Now Make It Work for You
Click here for more bestsellers


Answer Query



Quick Links