25 March 2016
Dear Experts, Assume we have purchase the car Rs. 1 lacs and useful life is 10 year, then dep. As company act. Is 100000 less 5000 as 5% residual value, 95000/10, 9500 per year however as per income tax 15% dep. Is 15000 in this case query.1) weather deffered tax liability or deffered tax assets would be created..2) what would be accounting entry for the same..3) how it will reverse in subsequent year..