Rajesh Goyal (CA) (122 Points)
21 December 2016Dear Experts,
A Pvt Ltd company failed to recognise its deferred tax assest in the last year under audit i.e. 31.03.2015, on account of timing difference arising out of depreciation as per Co.s Act and IT Act. Now in the current year its wants to recognise the deferred tax of both last year and current year as well. Can it do so.
Regards,
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 21 December 2016
Accounting of deferred tax is mandatory for all companies under AS-22 notified under Companies (Accounting Standards) Rules 2016.
In the given case it will be advisable to give effect in this year's financials and give suitable note to this effect. However, still the company will be liable for action for non-compliance of AS-22 in last year's financials.
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