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Deferred tax liability explanation in detail?


Rubika Sankar

Rubika Sankar

CMA Inter

370

26-Aug-21 20:58

389

Answers (1)

Best Answer

It is the difference between the book profit and tax profit( calculated as per income tax act) where book profit is greater than tax profit ...it means that currently the company had paid less tax than what it should've paid so the company will create a liability called DTL. It is recognised only for timing differences (AS 22)


Himanshu Somani

Himanshu Somani

CA Final

97K+

26-Aug-21 22:04

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