DEFFERED TAX LIABILITIES/ASSETS

This query is : Resolved

PRADEEP PAL (Querist)
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21 November 2009 IF A COMPANY HAS SOLD ITS WHOLE FIXED ASSETS THEN WHAT WILL BE TREATMENT OF DEFFERED TAX ASSET/ LIABILITIES

CA. Rishabh Mittal

CA. Rishabh Mittal (Expert)
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21 November 2009 According to me, DTA/DTL related to that Fixed Asset should be fully dealt with, in the year of sale.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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21 November 2009 i think DTA/DTL remains in B/S.

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PRADEEP PAL

PRADEEP PAL (Querist)
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23 November 2009 dear Ravi sir,

Please clear my doubt
why DTA/DTL should remain in B/S

CA. Rishabh Mittal

CA. Rishabh Mittal (Expert)
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26 November 2009 Related DTA / DTL should be completely cleared off from the Balance Sheet as the related asset is no longer in BLOCK OF ASSET. Please justify to contrary, if I am wrong .

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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26 November 2009 DTA IS NOT A CLASSIEFIED AS A FIXED ASSETS.

shakuntala chhangani

shakuntala chhangani (Expert)
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28 November 2009 DTA/ DTL is created for timing difference. w.r.t fixed assets it is for dep. differencials which originate in one period and capable of reversal in next period/s. Now, when the asset is sold out then where is the question of dep. and reversal of DTA or DTL?? it should be removed from balance sheet. Regards,
CA Shakuntala Chhangani