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what is defferred tax liability ? explain with 2 example.
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Answer / prakash pokharel
Deffered Tax is the amount the payment of which you delayed
to pay in future. There are many reasons for deffered
taxation. There are so many expanses and incomes which are
not allowed by taxation department of Government but we
enter as income and expenses in our financial statements
because in accounting they are allowed as income or expense
and that's why in the end the net income calculated by
company and tax department is rearely reconsile due to
problems mentioned above and due to that tax calculated by
company is different the tax calculated by tax departments
that's why deffered taxation is use to adjust tax between
entity and tax department.
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