Interested to Buy Any Domain ? << Click Here >> for more details...
how to calculate the deferred tax liability & what will be
the entry for the same
- 2 Answers
- 10306 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / shanmuk
As per Accounting Standard AS-22deferred Tax Means the
difference between Book Income (Say as per Companies
Act,1956)& Taxable Income (Income Tax Act,1961).Defferd Tax
may leads to Deffered Tax Asset (DTA) or Deffered Tax
Liability (DTL).
Where Book Income More than Taxable Income result in DTL.
Where Book Income Less than Taxable Income result in DTA.
Basic Reasons for Deffer ed Tax :
1.Depreciation is Per Books is Less than as per Income Tax
result in DTL.
1. DTA
DTA ----- Dr XXX
To P/L A/c XXX
2. P/L A/c --- Dr XXX
To DTL --- XXX
| Is This Answer Correct ? | 12 Yes | 1 No |
Answer / guest
Income for financial statement purposes is determined under
generally accepted accounting principles as set forth by the
accounting profession. Income for tax purposes is determined
according to the rules of the Internal Revenue Service which
are passed into law by Congress (Thought the same rules
applied with other contries). These rules often do not
follow generally accepted accounting principles.
Accordingly, differences will arise between accounting
income and taxable income.
These differences may be either temporary or permanent in
nature. Temporary differences are referred to as “timing
differences” because, with time, they reverse or “turn
around”. Permanent differences are forever—they do not
reverse. In this post we are going to discuss the temporary
differences.
Temporary differences involve the recognition of revenue or
expense items in one year for tax purposes but in a
different year for accounting purposes. Overall the total
income is the same for both tax and accounting purposes; it
is just the timing that is different.
Amit Kumar
| Is This Answer Correct ? | 4 Yes | 0 No |
what do you maen by Expected rate of return ? Is there any formula for expected rate of return? what is systematic & unsystematic risk ? how to calculate both the risk?
Tell me where do generally accruals appear on the balance sheet?
difference between funds flow and cash flow
What are the uses of journal in accounting?
How to create Donation entry In tally? Company donate Rs. 250000 to TATA MEMORIAL HOSPITAL
wages,conveyance,hra,spl allowance,P.F,& ESI payable journal entry?
6. What is the amount of Simple Interest on $ 1,500 for 90 days at 6% interest (year is 360 days)?
Classification of Errors as per Accounting
Mention the types of ledgers?
Purchase order value Rs. 10000/- 0.7% is erection chareges (inclusive of the above price) central Excise applicable & Local sales tax applicable,The above price is inclusive of all taxes.
What are the current liabilities & current Assets
How the Entry passed for Loss of Payment
Audit 
