Dear all ,
I have encountered a problem while making the deferred tax of a client . the client is operating under the tax holiday under section 80-IC .The enitty is tax free 100% for first five year and 30% profit are exempt for the next five year
I have following queries:
1.On the Reporting Date ie 31.03.2010 , we need to make out the Deferred tax assets./liab. only on the temporary differences which will be come out after setting off the temporary diff which will be reveresed in the same tax holiday period.
however , as the company is in the tax holiday for first 5 year for 100 % and 30% for next year ,
so MY PROBLEM IS TO WHETHER FOR THE PERIOD AFTER THE FIRST FIVE YEAR THE REVERSAL IN SUCH PERDIOD IS TO BE TAKEN INTO CONSIDARATION .......
WAITING REPLY...................
Regards
.
CAclubindia
