Treatment of deferred tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 September 2014
A company was charging depreciation on wdv method of income tax in books from year of incorporation. this year it has changed the method of depreciation to straight line method of companies act with retrospective effect. as a result depreciation saved(cr) has been charged to profit and loss account.
My query is (i) whether the deferred tax will be calculated considering differences of depreciation of all the years or difference of current year only.
(ii) whether deferred tax also be calculated on depreciation saved and added back to profit and loss account.
pls reply urgently.
My query is (i) whether the deferred tax will be calculated considering differences of depreciation of all the years or difference of current year only.
(ii) whether deferred tax also be calculated on depreciation saved and added back to profit and loss account.
pls reply urgently.
10 September 2014
In my opinion Deffered tax is to be calculated only on the diff of dep of all the yrs.
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 September 2014
thanks sir,
how we show the deferred tax value of earlier years charged to profit and loss as prior period item or merged the value in deferred tax of current year.
how we show the deferred tax value of earlier years charged to profit and loss as prior period item or merged the value in deferred tax of current year.
10 September 2014
it should be merged with current year
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