Deferred tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2011 our company has deferred tax rs. 135568.75 as per balance sheet 31.03.2009 and on 31.03.2009 Block Assets was nil due to sale of assets.

so what is the effect of deferred tax assets?

Whether deferred tax will be nil of keep it same position.

Please advice us

Thanking you

Rajat Sinha

Accountant
Annar Pharmaceuticals Private Limited

Rajagopalakrishnan R

Rajagopalakrishnan R (Expert)
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26 September 2011 Difference between the WDV as per Books of accounts and WDV as per IT rules will always give rise to Timing differences, provided at least one asset is existent in the block(Value may be nil in IT rules)
The effective tax rate applied on the difference will be the DTL
Eg
WDV as per Books 2 lakhs
WDV as per IT rules 0
DTL would be 30.9% on 2 lakhs i.e 61800/-