25 September 2010
Sir, I Have done Audit of Pvt Ltd Company Where Mat Provisions applied. My Ques is that, since the 15% Rate applied on Book Profit, then Whether Deffered tax Liabilty Created By 30% or 15%.
26 September 2010
Hi, as per Interpretation No. 6 of AS 22, in a period in which a co. pays tax under 115JB, DTA or DTL in respect of timing differences arising during the period, tax effect of which is required to be recognised under AS 22, should be measured using the "regular tax rates" and not tax rates under 115JB. In the answer given by CA Navin Jain above, the deferred tax liability will be 30,600 only if the whole difference is due to timing differences. Regards, CA Shakuntala Chhangani
CAclubindia
