Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

AS 22

dhanashree (article) (97 Points)

08 September 2010

PLEASE CAN ANYBODY PROVIDE ME WITH A DETAILED WORKING SCHEDULE OF AS- 22?? as soon as possible.....

in order to provide effects for DTA and DTL in the books of a/cs.... THANKS

Reply
Follow
Share

9 Replies

C.A. LINESH PATIL (CA) (910 Points)
Replied 08 September 2010

hii i have submitted file here,hope so it will be workable for u.

Attached File : 27 as 22.xls downloaded: 876 times

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

ravi. (article trainee) (424 Points)
Replied 08 September 2010

thanks linesh...very useful file....

also thanks to dhanashree for asking the related file...

Govind Rathore (CA Final) (543 Points)
Replied 09 September 2010

thanks for the file.................

(Guest)

Objective

Traditionally amount of tax payable is determined on the profit/loss computed as per income tax laws.

According to AS-22

Tax on income is determined on the principle of accural concept.

According to this concept,

Tax should be accounted in the period in which corresponding revenue and expenses are accounted.
(i.e) tax shall be accounted on accrual basis ; not on liability to pay basis.

Deferred Tax is tax effect of timing differences.

Deferred Tax Asset/Liability

As per AS-22,

Income tax should be treated just like any other expenses on accrual basis
irrespective of the timing of payment of tax.

Difference between tax expenses(which is calculated on accrual basis) and current tax liability,
to be paid for particular period as per IT act is called deferred tax(Assets/Liability).

Tax expenses = Current Tax + Deferred Tax

Deferred Tax Liability is

Recognised for timing differences that will result in taxable amount in future years.

Ex. A timing difference is created between depn. As per books of accounts & depn. Claimed under
tax laws which is in intial years higher than depn. Claimed as an expense in the Financial statements.

Deferred Tax Asset is

Recognised for timing differences that will result in deductible amounts in future years and for carry
forwards.
Deferred Tax Asset is recognised in current year for reduction in tax payable in future years.

When Timing Difference Would result into DTA/DTL

Item		When		When		Result
		Recognised		Considered
		In P&L		in computation
				of income tax

Revenue/Gain		Earlier		Later	Deferred Tax Liability


Revenue/Gain		Later		Earlier	Deferred Tax Asset


Expense/Losses		Earlier		Later	Deferred Tax Asset


Expense/Losses		Later		Earlier	Deferred Tax Liability



Journal Entry

Current Tax A/c………………Dr.
To provision for current tax

Deferred tax A/c………………Dr
To deferred tax liability A/c.

	OR

Deferred tax Assets A/c………………Dr
To deferred tax A/c.

Tax expense A/c………..Dr.
Deferred tax A/c………..Dr			In case DTA is created
To Current Tax A/c.
To Deferred Tax A/c.			In case DTL is created

P&L A/c………………….Dr.
To Current Tax A/c.


Regards

K.Ilayaraja.