Deferred tax.

Dear Pratik,

You must be known with the rule that DTA/DTL arises due to timing difference is charged to Statement of Profit and Loss. It is shown like this as per requirement ofPart II of Schedile III of Companies Act 2013 

Profit Before Tax         XXXX

Less: Tax Expenses

         Current Tax        XXXX

         Deferred Tax      XXXX

Profit after Tax            XXXX

After adjusting current deferred tax with opening balance of DTA/DTL balance amouunt shuld be shown in balance sheet like this:

Non Current Liabilities:

Deferred Tax Liabilities(Net)     XXXX

Non Current Assets:

Deferred Tax Assets(Net)        XXXX

Account will not be closed untill the timing defference ceased to exist. 

Regards

Shreesh Kumar

thanks a lot. 

Sir, but account will not be closed as it is a balancec sheet items but what about the PNL items. 

Eg:-

DTA A/c Credited - PNL 

   DTA A/c Debited - B/S

DTL A/c Debited  - PNL

    DTL A/c Credited - B/S. 

Then while closing the PNL line items to Retained earnings I have to close DTA / DTL debited or credited to PNL to reatined earnings or not  ?