What is Deffered Tax?
- 11 Answers
- 29575 Views
- Ashoka Distillers and Chemicals, Capital IQ, I also Faced
- E-Mail Answers
Answer Posted / chalapathi rao govada
Differed Tax is difference in the tax liability as per
Accounting profit and Tax liability as per Income tax Act
(sec 115JB).
Differed tax araises due to timing differences of
recognition of various tax deductible transactions in both
Accounting and tax calculations.
Eg: Depreciation on Fixed Assets.
for example As per companies act one asset is eligible for
100% depreciation in the first year itself, but the case
may not be the same under sec 32 of the Income tax act it
may gives some other rate of depreciation on that
asset.lets assume it allows only 50% in the first year and
remaining in the subsequent year.
as per accounting books shows a lower profit and tax
liabiltity due to higher depreciation claimed in this year
ony compared to IT profit.
It is a clear case of Differed tax asset..... we will pay
more in this year we will carry it as a differed tax asset
in our balance sheet which is going to be offset in the
coming year...... in the short range period difference will
apprear but in long range timing difference is going to be
setoff.....
One more thing Differed tax will not araise due to
permanent differences between these two profits.
If you reverse the above example it will give the situation
of differed tax Liability.
| Is This Answer Correct ? | 29 Yes | 6 No |
Post New Answer View All Answers
Apportion Nett profit of rs 325600 among the partners A,B,C and D as per sharing ratios of 26%,13%,32% and the balance to D.Pass journal entry
plz tell me short cut method in maths for clerck post in bank
Expand BFSI
If i want to establish a company in which i want to manifacture and sell the Wine. So how many permissions i have to taken and who will issue those?
Truck # 3 has a list price of 16000. It is acquired in exchange for a computer system that company A caries in its inventory. The computer system cost 12000 and is normally sold by company A for 15200. Pass the journal for the same.
How Are The Balance Sheet And Income Statement Connected?
Expand CASA
Prepare a trading account, profit and loss Account and Balance sheet form the following trail balance and other adjustments as on 31.12.2009 Adjustments: 1. Closing stock R 7060 2. Allow interest on capital at 6% p.a 3. Insurance prepaid Rs 60 4. Depreciate Building and furniture at 10% p.a. 5. Wages due Rs 40 6. Provide 10% RBD and 5% on debtors and creditors 4. From
what is GL Balance
if not found suitable for the post applied for, are you willing to be considered for a lower post yes / no ? why?
• What are the types of cash flows?
commisiion recieved journal entry and receipt required
plz send me hsbs finance questions asked in the interview ans appitude also
My BASIC Salary is 18,000
npa is either person or account
