Hi Friends,
Kindly explain me the concept of Deferred tax. And accounting treatment for DTA, DTL.
Regards,
Swathi
3 Replies
CA Saroj Kumar
(Keen to learn something new every moments)
(2588 Points)
Replied 10 September 2014
Kindly go through once as 22.nad then ask specific problem you...i don't think that you ca not understand the meaning of dta or dtl by just reading as 22.
Swathi hebbar
(CA Final)
(257 Points)
Replied 10 September 2014
Mr. Saroj, I have gone through AS-22 so many times. But practically I don't have much exposure. So, anyone who has much exposure in to this explains...it would be helpful for me.
CA SONIYA AGARWAL
(self practice)
(3005 Points)
Replied 10 September 2014
DTA AND DTL IS CALCULATED FOR DIFFERENCE IN ACCOUNTING INCOME AND TAXABLE INCOME AS PER INCOME TAX . THE DIFFERENCE COULD BE PERMANENT AND TEMPORARY , NO DTA AND DTL IS CALCULATED FOR PERMANENT DIFFERENCE SINCE NO REVERSAL WILL OCCUR .
DIFFERENCE IN DEPRECIATION RATE IN COMPANY ACT AND INCOME TAX ACT GIVE RISE TO TEMPORARY DIFFERENCE AND HENCE DTA OR DTL HAS TO BE CALCULATED .
TOTAL TAX EXPENSE = CURRENT TAX + DEFFERRED TAX.
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