08 May 2016
Deferred tax asset or deferred tax liability is required to be provided in books of accounts as per AS 22, which is applicable on company. There is no relation between loss and deferred tax asset for provision purpose. For any further query you may write us at info@wealth4india.com or call us @9266242424 extn. 1 or 11
08 May 2016
Dear Querist,
Deferred Tax provision is made for any timing effect created and not for a permanent effect. A difference in depreciation as per Co. Act & IT Act is a timing effect hence shall be provided for as a DTL or DTA. Loss is permanent nature. But check whether it is on account of any entries of timing effect or no.
09 May 2016
Loss incurred can be adjusted against future profits so it is a timing effect. If you foresee future profits then create Deferred tax asset.
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