this is the first accounting year for a pvt ltd company. depreciation as per books is Rs. 200000 and as per IT act is Rs. 300000. then will it create DTA or DTL. please guide its very urgent as the last date of filing ITR is very near. my colleague suggested tht it will be deferred atax liability on Rs. 100000 (diff due to different depreciation) is this correct
05 October 2011
the deffered tax is the timing difference between the expenditure allowance in income tax and the other act, in the current situation, the profit as per Itax is less due to higher depreciation, so the deffered tax liability is created in the books, the deffered tax liability shall not be 1,00,000 but shall be 100000 x 30%+7.5%+3% i.e. the difference in tax not the difference in expenditure
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