Deferred tax provision

Yasaswi Gomes new (Finance ) (4514 Points)

16 July 2022  

Hi,

From the new machinery purchased, if the taxable difference is 10000 while current tax is 90000, the entries are supposedly

Dr. Current tax 100000

Cr. Deferred tax 10000

Cr. Current tax payable 90000

Can I pay off my current tax immediately this year and make entries like

Dr. Current tax 900000

Cr. Bank 100000

Dr. Deferred tax 10000

Cr. Deferred tax 10000??

txs.