The Calculation of deffered tax liablity Should be done in case of loss in Pvt. Ltd comany?????
& if Yes Than how I Calcuate ???
Plz its very urgent
2 Replies
sudhakar ca cwa
(service)
(1518 Points)
Replied 01 September 2010
not only loss company.
it arised in every comapny.
once read AS.22 for better understading.
DTL will arise when tax as per Books is less then the tax as per income tax.
Arun
(accoutant)
(41 Points)
Replied 01 September 2010
Hi,
DTL or DTA can be simply explained as it is a tax amount - Asset / Liability arising due to/ generally for the following areas / matters ( due to timing difference)
1) As you are aware The deprecitaion provided under company's books is as per compnay policy / as per companies Act 1956 but while caluclating Income tax liability , deprecaition can be claimed at rate specified in U/s 32- in this case u have take the diffrence between ? Compnays book Depreciation and IT depriciation
2) Where the expenses are dissallowed under income tax act due to noncomplience with TDS provisions, which can be claimed on in the year of remittance of TDS - so here the diffrence between expenses booked and expnses allowed under IT act diffres,this is also an element for computation of DTA / DTL
3) Similarly, expnses which are allowed under income tax act on payment basis ex: gratuity , leave encashment etc.
4) The expnses which is permanetly dissallowed can't be taken as it is not allowable in future under IT act.
read AS 22 for better understnding.
Recent Topics
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
Related Threads
CAclubindia
