05 September 2011
1 co every takes diff. of dep as per book & it for deferred tax calculation but if co. wants to take diff of closing wdv as per books & it .. is it possible to do so if wdv for dep as per it & slm for co. a/c is followed .. if yes wt is a/cting treatment? Please explain ?
06 September 2011
I think taking the difference of closing written down value will be more accurate. There may be difference in wdv other than difference due to depreciation. Take the case of sale consideration. Its treatment is different in both as per books and as per IT. As per IT the full sale consideration will be deducted from wdv but as per companies act only wdv of the sold item will be deducted. Therefor, in my opinion taking the difference of closing wdv is correct, since this this amount is going to reverse in the future
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