24 October 2011
Dear Sir Please tell me what is deferred tax liability for the below mentioned figures for A.Y 2010-11 Profit as per P&L A/c - 41875507 Add Depreciation Donations etc... - 14899002 Less Depreciation As per I T - 9413800 Taxable Income - 47360709
30 October 2011
My dear friend u have to separately mention the amount of depreciation and donations. It seems that under IT Act, except depreciation, nothing is deductible (Donations etc.). so these will be considered as permanent differences and AS 22 will not be applicable on it. If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset. If u have any further doubt, revert back to me. Regards, CA Shakuntala Chhangani
30 October 2011
My dear friend u have to separately mention the amount of depreciation and donations. It seems that under IT Act, except depreciation, nothing is deductible (Donations etc.). so these will be considered as permanent differences and AS 22 will not be applicable on it. If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset. If u have any further doubt, revert back to me. Regards, CA Shakuntala Chhangani
CAclubindia
