Hi
Please tell me Is this the Deferred Tax Liablilty or Deferred tax Asset and the amount of the same.
Depreciation as per Companies Act is Rs.24524/-
Depreciation as per Income Tax Act is Rs.15118/-
Its Urgent
12 Replies
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 01 October 2010
deferred tax asset Rs. 2906 i.e.30.9% of Rs. 9407
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 01 October 2010
Dear lakshmi,
As rightly said by Mr.navin above, Taxable income would have been increased to the extent of rs,.9406. Hence there wud be a DTA of Rs.2906
Anil Kumar Meena
(Assistant Manager)
(475 Points)
Replied 01 October 2010
Agreed with both of the expert..great job guys
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 01 October 2010
hiii
here as per company law you are claiming higher depreciation that means if you look at profit of company books it is lower than income tax books profit bcoz under income tax you are claiming lower depreciation as compared to company books.
means as per company law you have to pay less tax as compared to income tax Act
but truly tax is paid as per income Tax books so therefore you will pay greater than what you are supposed to be paid as per company books.
So as per AS 22 what you are paying excess today in compare to company law, is a DTA in company books.bcoz as per company book you were supposed to pay less tax but u paid higher so u would be able to set off this excess tax in next year in company book,remember income tax Act does not recognize any DTA & DTL it only created under company books to match the amount of actual tax under income tax with the amount of tax under company law.
and further after creating DTA and adding this to provision for tax you will get the same amount equal to Tax on company income.
Nagam saisameer
(CA FINAL )
(170 Points)
Replied 01 October 2010
| Particulars | Amount | Rate | Amount * Rate |
| Companies Act Depreciation | 24524 | 30.90% | 7578 |
| Income tax act Depreciation | 15118 | 30.90% | 4671 |
| Deffered tax Asset (Timing Difference) | 2906 |
Nagam saisameer
(CA FINAL )
(170 Points)
Replied 01 October 2010
| Particulars | Amount | Rate | Amount * Rate | |
| Companies Act Depreciation | 24524 | 30.90% | 7578 | |
| Income tax act Depreciation | 15118 | 30.90% | 4671 | |
| Deffered tax Asset (Timing Difference) | 2906 |
Pardeep
(Audit Executive)
(51 Points)
Replied 01 October 2010
U HAVE ALEDY GOT RIGHT ANSWERS FROM BEST ONES
basant
(manager finance)
(105 Points)
Replied 14 May 2011
Dear All,
As per the above calculation, it is understood the DTA. However someone has sent me calculation of Deferred tax which seems to be opposite of what is explained above.
Can anybody explain me. Thanks in Advance.
Attached File : 404690 715451 59 deferred tax.xls downloaded: 195 times
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