Md. Mosharof Hossen ACA (1 Points)
11 November 2021
prasad Nilugal
( GST Practitioner & Accounts )
(14807 Points)
Replied 11 November 2021
Yes , Deferred Tax on right to use on asset is applicable ., either deferred tax asset or deferred tax liability .
For example , Company has taken an asset for right to use on lease of Rs 2000000/- for five years , Depreciation will be on SLM -striate Line Method - in equal installment ,and lease rent will be 150000/- per Annam , interest rate is 5% . Tax rate is 30% . Calculation for Deferred Tax as follows . Tax department will not recognize Depreciation because right to use as asset on lease , and allowed Lease rent as deduction .
As per the books As per Tax department
Right to use an asset 2000000 200000
Less -Depreciation 200000
Add- 5% Interest on lease rent 100000
Less - Lease Rent 150000
-------------------- ---------------------
1800000 1750000
Difference 1800000 less 1750000 = 50000/-
Tax 30% on 50000 15000
So 15000 is Differed Tax Asset .
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