Deferred tax asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2012 dear all,
i am working on the def tax of a pvt limited company. opening def tax liability is 2.00 lacs.during the year there is an asset. Both the liability and asset arose due to timing difference on account of dep. As on 31.03.2012 there is an asset of Rs.0.50 lacs.i want to know if i can recognise the asset or not.

aadish

aadish (Expert)
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30 July 2012 Dear

You shoud book a defferred tax laibility for amount of Rs. 1.5 Lacs.

Ok, it has to be net off.

Unnikrishnan

Unnikrishnan (Expert)
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30 July 2012 Sir,

AS 22 requires us that DTA can be recogonized if there is reasonable certanity that such asset can be utilized against tax liability of future income.

for DTA arising on account of unabsorbed depreciation or carry forwarded loss , virtual certainity is required.

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