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How to calculate the deferred tax liability

3410 views 1 replies

Talada Venkat Rao

Self Employed

60 Points Joined March 2011

I AM REQUESTING THE EXPERTS TO GIVE ADVICE ON THE FOLLOWING SUBJECT :

A PARTNERSHIP FIRM (UP TO 17.08.2010) CONVERTED IN TO COMPANY ACT., DATE OF INCORPORATION 18.08.2010.

THE COMPANY'S PROFIT IS Rs.1,03,415 AS ON 31.03.2011, (FROM 18.08.2010 TO 31.03.2011)

THE DEPECIATION IS Rs.2,90,777 AS PER COMPANIES ACT.

THE DEPECIATION IS Rs.2,97,308 AS INCOME TAX ACT.

PLEASE TELL ME HOW TO CALCULATE THE DEFERRED TAX LIABILITY

VENKAT RAO T.

taladavenkat @ gmail.com

Replies (1)

C.A SHASHANK GOYAL

Chartered Accountant

362 Points Joined May 2011

HI , I am of the opinion that (297308-290777) *30% will be defferred tax liability that will be created .As , as per As - 22 defferred tax asset and liability is to be calculated on the basis of normal provisions applicable to companies and not as per MAT provisions .