10 March 2008
what is deferred tax ? would u please guide me about link with the help of which i can reach the real meaning of deferred tax and its treatment and implication in taxation and accounting
10 March 2008
DEFFERED TAX IS JUST DEFFERMENT OF TAX.IN INCOME TAX SOME THING MAY BE DISALLOWED WHICH AT THE SAME TIME ALLOWED IN ACCOUNTING DUE TO SUCH TIMING DIFFERENCES DEFFERED TAXATION ARISES .IT IS TEMPORARY IN NATURE,THE EXPENSE WHICH WAS DISALLOWED IN INCOME TAX SHALL BE ALLOWED IN NEXT YEAR.THEREFORE THAT EXPENSE WILL CREATE DEFFERED TAX ASSET IN YEAR BECAUSE THE TAX LIABILITY IN RESPECT OF SUCH EXPENSE WILL BE REDUCED IN NEXT YEAR .
CAclubindia
