AS-22

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2011 Hi experts,
As per AS-22,if there is any loss(say Rs:-200000) in the current year and if the loss could not be setoff in the current year, the same can be carried forward as DTA at the rate(say 30%) which is applicable at the Balance sheet date. My doubt is when we can claim total amount of Rs200000 in the next year in such case why we to apply tax rate and carry only part amount as DTA(i.e 200000*30%=60000) and why not we can carry total amount of Rs. 200000 as DTA?pls guide me what is the reason behind this?

C.A.Javid Patel

C.A.Javid Patel (Expert)
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21 January 2011 Becuse the Standards says that the you have to provide for current tax and deferred tax. The standards clearly speaks about the tax and hence the 30% is the tax rate. There for it is 60000 and not fully 200000.