Accounting standards 22 taxes on income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2013 Dear all,

A company has purchased machinery costing Rs. 1,00,000 and eligible for weighted deduction of 125% for Income Tax Purpose. whereas in books of company they charge depreciation S.L.M basis and life of machinery is 4 years.

What will be accounting treatment in the books of the company as per AS 22 (DTA/DTL)?

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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31 January 2013 The Picture will be Like This:-

Dep as Per IT:- 125000/- (In That 25000 is Permanant Difference so AS 22 Not Applies)

Dep as Per Co. Act:- 100000/4 = 25000
.
Now Calculation of DTL as Per Corporate Method (IFRS Method):-

WDV as Per IT Act: NIL
WDV as Per Co. Act :- 75000
75000*30.9 (If No Surcharge)% = 23175/-

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2013 Thank you CA Ayush Agrawal

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