defered tax liability

This query is : Resolved

jay arya......... (Querist)
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12 June 2009 HELLO, CAN ANY ONE TELL ME ABOUT DEFERED TAX LIABILITY/ASSETS. WHAT IS THE AMOUNT DETERMINE OF DIFERED TAX LIABILITY/ASSETS WHEN AMOUNT OF DEPRECIATION AS PER INCOME TAX ACT RS. 450 & DEPRECIATION AS PER COMPANY ACT RS. 550

THANKS IN ADVANCE

chetan soni

chetan soni (Expert)
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12 June 2009 When dep. as per companies act is higher than the depreciation as per income tax act then deferred tax assets arises.

for eg.

Dep. as per companies act 550
(-) dep as per income tax 450
-----
100
-----

Then deferred tax asset will be 33.99 @ 33.99% on 100

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 June 2009 For more reference refer AS - 22 on accounting for taxes on income. Deferred Tax assest will be created @ 33.99% or 30.9% as applicable on Rs. 100/- as stated by Chetan

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CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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13 June 2009 A Deferred Tax Asset of Rs 33.99 or 30.9 (With or without surcharge, as applicable) may be created on Timing Difference of Rs. 100 on account of Depreciation Difference.