As:22 which tax rate applicable for creating dta/dtl?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2013 Hello All,

Can you please let me know that which TAX RATE is applicable for Creating as well as Reversing DTA or DTL ?? Is it Current or Future Rate?

Please help me to solve this......

Thanking you.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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27 November 2013 Next years tax rate.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2013 how next year's tax rate?
why current year tax rate is not taken in creation/reversal of DTL/DTA?

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 November 2013 Deferred tax is made on the the differences between taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods and hence next years tax rate is taken into consideration while creating dta/dtl.

Further para 21 & 22 states that Deferred tax assets and liabilities should be measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and Deferred tax assets and liabilities are usually measured using the tax rates and tax laws that have been enacted. However, certain announcements of tax rates and tax laws by the Government may have the substantive affect of actual enactment. In these circumstances, deferred tax assets and liabilities are measured using such announced tax rate and tax laws.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2013 thank you sir......