11mA INDAS 12 Income Taxes

Pasta Curr ent Tax

t t t t
Offsettingcurrent
1 Def 2 Recag 3 measurement 4 Accounting
Treatment Tax Asset Current
Tax Ciab

Past B Deferred Tax

t t t
1 caddying 2 Tax Base 3 compute
Ilassificathof
a 5 Assess Deduct
Ant Temp Temp Diff Temp Diff
Diff

t t t
6 DetermineTax 7 Calculate 8 Accounting for 9 offsetting
Rates for Recognise Deferred Tax DTAUD
DeferredTax DeferredTax

Parte Practical Applications Exceptions

I t I
1 Business Asset 3 Share Based 4 TempDiffassocia
Combination acquisition Payments with Instin Sub
Associates 954
 CurrentTax
Ind As 12 Incometaxes I
Deferred Tax

9 x1 x2
Off Egl
W 20 1 X2 1001909
a disallow

Books of Alc's ya ya
Revenue 1000 crores Revenue 1000 crores

Exp 1700 crores Exp 600 crores

PBT 300 crores PBT 400 cares

tax 307 go Tax 301 120
t
To be booked in be paid
Ale's Books
Graent tax
IE Tax Exp Pic AleDa 90
Prepaid Exp Ale De 30 DeferredTax Asset

TO CIB All 120

PL exp2109µW
r2 Ale's Ta pyo
Revenue 1000 causes Revenue 1000 crores

Exp 700 cares 1800 canes

Exp
PBT
Tax 307
300 crores
90 crores
per
2000mi
tax 307 Go crores
He
Taxto be paid
TaxAccrued
to be booked
L

J E Tax Exp Pll Alc Dd 90 crores ArdentTax

TO CIB Are 60 crores
To PrepaidExp Reverse 30crores
Def tax Asset Reverse
 Income Taxes

te te
CurrentTax Deferred Tax
He
Tax to be paid as Diff Btw Tax Accrued as
perAle's
pertaxation laws
Con taxable Taxpaid payable Books
He
profit as pertax
Tax Books Ka profit

Eg Proper J E

Current tax Deferred Tax

CurrentTaxExt Lee Da 120 Deferred Tax Asset Ale Da 30

TO Clb Ale 120 To PIL CDT 30

Sche PIL Draft

Tax Exp
Current Tax 120

Def Tax 30 90
 DeferredTax Pll Approach Bls Approach
Hove
eg As

Egg alloyX1 Landoorginhi PPE Purchased 10 or life tax Rate 301

Ale's

Lyn fyrs
AI Tax
JE

Jay PREACDA Nor Day PPEAle Da 109

TO UB 10er TO CAB 10er

Ale Da 2er
trend Depm Ale Da 2 fer trend Depm
TO PPE 2 Ser TO PPE Ler
Cloer Gyu Cloer
sun
Bls Approach for Def Tax DTA Deferred TaxAsset
DM Deferred Tax Ciab

Particulars taffies
C A Ale's TB Difference t.lt
Garaging FIBase 301

PPE
lo er low
Day

Ur end
ND FA
7 scr for Orser
H
Cloer 2 ser Ocr Ler
H IE Dra Mep
TOPIC
Ipm Depor D
 Hint Always Try to Bring C A towards TB

Example list
Particulars CA
Alff Io Bis Difference DT
aam Aut 30
Iax Base
PPE ION
lifeAle's 44m
lifetax Syn
Day 10cg 10in
Trend 7 5er per o.is
T Dedwfble
II Off
Diff
e Non Depth
Land 100m
lifeACC's Infinite
lifeTax Infinite

Day 100er 100er

Arend 100er 100er

CA TB
taxable
Land 100crores temp
Diff TTD
on Yrend Ale's Reval Model DR
Fairvalue 2 150 crores 150 er 1000 Sefer Iser
RevGain sour OCI MRI
II e.pt
OCECNR
Reverain

Tax NO Revaluator TO DTL

Book profits only

when realised

Prepaid Exp 100 100 0 100 380ᵗʰ

Alc's Accrual Basis TTD
f
D Exp pic 30

cpa1oo Exp pic 100

Tax Cash Basis FepfE.iq Tooth 30
TOCIB 100 TOC B 100
 t
outstanding sÉty 100 100 0 100 38
Ale's Accrual Basis DTD

Cash Basis
If a 100
tax
Toolssay no
Noway
Mes Profitt Tanf
Tax ProfittTaxP
Aaj f futurete
DTA
Advance Infant 7100 100 O 100 307
Ale's AccrualBasis JE JE
DTD

Tax Cash Basis CBAle 100 BAD 100

TOAdx Inc 100 TORevCPID100

µg
pliab 38
Ploy for Gratuity 100 100 0 100
Ale's Accrual DTD
t Ie
Tax Cash Basis No
Ep 100 entry
Repsolfor
100
Gratuity
Iab
Pray for Baddebts 7100 100 O 100 30 DTA
Ale's Accrual DTD
y
Tax Cash Basis Monitory
Repro

Interest Incommotffable 2700 100 0 100 30 DT

Ale's Accrual JE JE TTD

Tax Cash Basis profit4 Tank IntrelableAllDa No
entry
tax profitte Tante to Int Ine
Aajtax tofuturep
8 preliminary ÉYp 100 0 80 80 24 DTA
Alc's Day wloff J tax DTD
Tax wloff over syn Eff 100 Explentate 20
Asset
Prepaidexp go
NCLB 100
ToAB 100
1 Fines Penalties 200
Payable
Diff is than temporary Diff
Alc's AccrualBasis Ether
Tax Disallow Concludes CA TB
NO DTA IDT

2 AgricultureIncome 100
Relable Diff is
gther
than temporary Diff
Afc's Ace Basis
Tax Exempt Conclude CA T B
MO DTA IDR

DTA In future Pay less Tax Deductible Temporary Diff DTD

Dtl In future paymore Tax taxable temporaryDiff TTD

Egon 01 04 1 Akita purchased Cad PPE 500 causes Tax Rate 30
Alc's life 54ns Tax life 44ns
Compute deferred Tax for all 59ns Pass J E for Deferred Tax
Assume PPE was used for all Sys Not sold in Between

SOI Particulaas CA T B Diff DTA Dtc 301

PPE
500 560
Day

400 375 25 75
tried DT
soo 100 500 125 TTD
je
creepin introep
500 1 5 D TEXP PIL 7.5
500 44
TO DIE 7 5
Bls lieb

Lend 300 250 50 15 DM

TTD to
JE

D T Exp PIC 157 5

TO DM 157 5
Bend 200 125 75 22 5 Dr
TTD
Dr Exp Pll 75
TO DM 75

v9 end 100 0 100 30 DTL

D T Exp PIL 7 5

TO DM 75

Ur send 0 o o offtiudate
frontal
DTL Reversal AlcDd30

TO DFEXPCPID 30
 Assess Reassess DICTA Dra Reversal

Yr2 5000
DTA 15000
Revista
Eg Day 983 5000
create usage
I s Yr 9 5000
Future less
tax
Future Economic
Benefit

DH can be used in following 3 cases

Intthe yr of Dra Reversal check whether there is
any Dtl Reversal

In the ur of DTA Reversal check whether there is any future profit expected
profits can be created thorough tax

opportunities
Pigging

Illus 15 LDR
particulars
TTD 31 03 7 311031 2 3103 73 31 03 74 310375
9000 307
He
Tl azz 2700

DTD
DM create
yxe900
1200
9000 307 can create
DTA 1200
É
Recognise
v
300
DTA7900 Disclose
Forthis
H DTARev
we can utilize we dont
only this much have Dte
against Reversal as
Tenay of now
 of insteadof 4000
Eg In above illus 15 assume DTD was 15000 expected

to Reverse over 4years Tax Rate 307 Everythingelse same DM same as

above illus

particulars
TTD 31 03 71 311031 2 3103 73 31 03 74 310375
9000 301

Izz 2700
DM create
Ijf900
DTD 15000 4500
h
ni
t.se
ex comma
DTA 9500 a
Blf upto900 c
Recognise u
1800
Dta72700Disclose Forthis
DTARev
He
gag gag 908 we dont
we can utilize
only this much have Dte
against Reversal as
kenaf of now

Tax losses
Tax loss profit 80000 Tax X
Irl 50000
H
ur 2
Preyloss 50000
You can elf
to future years
e Netprofit 30000 Tax r
DTA create
why
Aaj ke loss ki wagon
future mein Kum tax

DTA Aunt 50000 307

in ur 1 15000
 that credit
OIL
Minimum Alternative Tax

41 Tax Books Profit I 3 Tax Payable O

Book Profit 50,000 157 Taxpayable 7500 Tax as per that provisions
As Ie
per that prox Pay tax of 77500 to Gout in 41

Yr 2 Tax Profit 80000 307 24000 Inari co will

create DTA on that
MAT profit 10000 15 1500 credit
7500 Tax Rate

Ur 2 Tax Payable 24000 7500 16500 Hint Jitna MATcredit

hai otra DTA
fat Banega
credit

117 pm Dtd x Tax Rate Before creating Any

tax losses DTA taxloss x TaxRate DTA check the 3
discuss
m yy step criteria
above
 Illus 16 LDR
D Tax 1055 30,001000 NoamallyDT created on Tax loss
2oy.is

But since co does not expect to earn future profit No DTA will be created

Particulars CA TB Diff DTA DM Lot

ai Prov for closure cost 201 0 201 4L DTA

Ale's Accrual Dtp

JE Exp 201 entry
Tax Cash Basis
ToPro go

31 3 18
iii Intangible Assets 1520000 O 1520000 304000 DTL
i i 18 16L ye TTD
Development cost
C73m 019 DevExp Pic 16C
Amonth
161 3,12 1 ReclB 161
4 noAssetreated

107,80000 1.00.00.000 780000 156000 DTA

in loan taken FL
431 3 18 cont DTD
ayyy

can I Aleiscent
Step CF step EIR ray
CF Tr Est
Y ter inflow 4200000 outflow
CATCFC
07 coupon
step
1 3
trend Open Juffiot Repay cos
3ryrend 13043800 313.18 98,09000 980000 CI 1,07190
CA in
Fu of FL NO relation NO CFI Ale's
step no level I input
FY T P E TC
I cry 21 981
Eg On ol ou x1 Ak Itd purchased Feddan PPE 100 lakhs Tax Rate 301
Alc's life Syn Tax life yrs
On 31 0372 Ferrari was Revalued at 120 lakhs

In income tax No devaluation profits aae taxed when realised

501 Day no Diff

artadcafifnXevawationjcnYftterieya
T.B Diff DTA DM 307

PPE 80 120 75 45 135 Dte

100 tandem
100 lyrDeprn
foxy Moxy ÉIexpTÉ 13.5
TODT 13.5

Total Diff 745

t I
Deprn A with c a Revaluation Baith
pease take 3 A
He
TB Éalafter CA Before Diff Dt L
CA Diff DT L 301
paan Reval
80 75 5 15 120 80 40 ID
A
H
D TEXP OCI 12
D T Exp PIL Alc 1 5
TO DTL 12
TODTL 15

ar2end CA if Mo Ren CA afterRevan TB Diff DTA Dr

313 3 60
90 40 K DID
12041hrDeprnfzo
I
120 49
Remains life
inAle's
 Total Diff 40
1
to
ARC FakeCALEB Revaluation
Depm Real
B withA
CA TB Diff DM B
cumulative
CA afterReval CA a Di ftp.t.L
60 50 10 3 Bal 90 30
60
i.fm
T.Exp PIL 3 1 5 atn D
TODT 3 1.5 IE
AT
IEpCOI3

Yriend Total 13 5
482 DMcreate 15
422M Reverse 3

CLS Bol of DTL 12

as on4r2 end
Ques 2 LDR
that credit 31 3 16 8.5 crores DTA 8.5
He
TODTExp Pll 85
create DTA
31 3 17 9 75 crores
DTA 752
9 1.25
TODTExp PII 97521.25

ppe ca Bette CA afterReva TB Diff DTA

Diego

3113116 22 40 22 18 3.6 DTD

Assume to
be sameas
TB

Total Diff 18
to 1
Deprn A withe Revaluation

CA TB Diff DTC CA Diff

CafferRexall CBeffey p.tl
22 22 40 22 18 3.6

DTExp Oct 3.6

TODM 3.6

CA Before CA afterReval TB Diff DTA DTL 201

Reno
1.3.17
PPE 20 95 20.75 24 25 4.85 DTD
d
22 2 Do Not deduct 22 1.25
Depm of 16 17
from this
Co2 we 1stcharge Deprn
then we revalue
i at theend Revalued
figure is tobeconsidered
 Total Diff 24 25
I 1

Depm peach grateB Reval

CACaftepreyagCACBefar DiftD.t 20
CA T B Diff D't 207 Reval
20 20.75 g y 0.15 DID 45 20 25 5 DM
A
DTA 0.15 D'tExp OCI 1.4
TODTEXPIPIDO 15 TOD.TL 1.4

Ur lend Dr 36
42 DTAcreate 0.15 Final Ans
9829Th create 1.4 Ason 313 17 DTL 4 85 Bls

Yr Lend Met 485 PIL 16 17 0.15 DTA

DTI OU 16 17 19 DTL
 Determine Tax Rates for Deferred tax

Eg y x1 x2 Tax Rate 30
14thFebx2 Announced Gimplemented that from NextYr x2 3 TaxRate 3s

31 031 2 Taxable Temp Diff 50000 1.35T

Fiture TaxRate

Future more tax Only if available in CY i e announced a

substantiallyenacted in Cg

t.IE ax 3ot

DT 351

Non Deprn
Eg2 PPE
r

and normal taxRate I

CA TB Diff CapGainRate 20
20
1 2
120 19 41L
v

Rexmodel Cost
Diff Reversal only
possible thru sale
cg3 PPE Depm
Machine NormalTaxRate 361

CA t B Diff Tax CapGainRate 20

100 80 20
Intention

use Creversal will

happen she
thru Defra µ
use Tax Rate 301 UseTax Rate 207
Eg4 Distribution ofDividends
Co Bansal Itd profit

PoofitsRetain ProfitsDistribute Dividends

Undistributed

Tax Rate 30
Tax Rate 40
i.e If youpaid 401 Tax earlier
Now dist die then you will
you get
10 refund of tax
rundistributed profits

CarrTax Def tax Rate 1 1301

In future if Co distributes div 2 10 becomes refundable then Co can book a

Current Tax Asset TaxRefund for that 101

Ques
Particulars CA T B Diff DTA DM 20

Invst in Eqshares
Asset
31.3.17 70 45 25 5 DTL D TExp 5
TODTL 5

31.3.18 75 45 30 6 DR D TExp 6 1
TODTL 6 1
As on 31 3 18

DTC BIS

PIL 17 18 D T Exp I
 i Tax loss 20,00000 nodmally created on Tax loss
Dtfy.is

But since co does Not expect to earn future profit No DTA will be creal

Fin liab CA T B Diff D t 20

31 3 20 5390.000 50.00.000 390000 78000 DTA
WM

WN

Step CF FL
yr CF tocost
50L inflow I 1L outflow
13 Of coupon
3ʳᵈyrend 6521900

Step FYof FL
FY T PEI T C
49,00000

step EIR 101

CAT FY Note In this goes it is asked to verify EIR Prepare LATfor

step
all years 2 Cls Bal the end should be NIL

Yr end Opn Fe Jut 101 Repay CCS

31.3.20 4900000 490000 53.90.000
31.3.21 5390000 539000 59,29000
31 5 22 5929000 592900 6521900 NIL EIR is coddect
Illus 5 IDR Fin thousands
i Current Tax
on
taxable profit
104 251
26

IE Corr Tax Exp AC Da 26

To Corr Tax lids 26

ii Deferred Tax
CA TB Diff DT 25
PPE Parchon 1ˢᵗ Feb
Ch 31 3 X2 118 114 4 TTD DM
120 120 6

Donation other than Temp Diff i CA TB NO DTA DTI

II DT Exp All Do 1
TO DTL I
 PIL Extract

Accrual in Ale's
I ax 2
per
Ali's profit 100
Def Tax 1 Tax Rate 25
27
Tax Exp 25
Reco
27
Tax Reconciliation in Absolute Numbers
Profit Before Tax Ale's 100
Tax Rate

Tax Aeret
Expfor which taxded 2
not allowed 8 251
Tax Exp in PII 27
PIC
TaxExp
Tax Rate Reconciliation OFU Actualeffective Rate 100 27 It shudbeas
2,7

Applicable Tax Rate 251 Accounttprofit

Tax on Donation Not allowed

cinn
ff.fi ifiooI7oxeo

AvgEffective IF
TaxRate
 Illus 9 UR
Particulars CA TB Diff DTA DR 251
Invst eÉq shares
31 3 X2 240000 200000 40000 DM
10900
TTD

No profit is earned Exp ou 10000

in taxation Books
TO DTL 10000
No current tax

M Asset
38400 48000 9600 2400 DTA
Inventory
u
DTD
current tax
IF DTA Alc DS 2400
From K's pointofview Tax on Taxable profit
25 4000 TO DT Exp 1,2400
160,00 carry p

No unrealisedprofiteliminationin tax
i full 16k is taxable
profit

Parent Subsidiary
can
sale 41100

Cost Sop Profit

64000 80000 16000

401 soldto 25600 32000

34 4
38400 48000
Inventory
unsold 60
AI's CA FB
after elimination Noelimination
of profit in
ofonrealipsef.gg tax Books
 CA TB Diff DT 25
Adv Income liab 80000 80000 20000 DTA

I.EC BAlCDQ2L It CIB 21 D th 20k

TORev21 TOD'TEXP PIL 20k
TO Rev 1.2L
TOAdv 801
ftp.Jncomo

Current Tax

Taxableprofit 21

21 251
50000 current
Tax

01 CA TB Diff D.T 301

45000 DTA
itAsset ASSOTA 650000 800000 150000 DTD
grend
o

CA 101
RA 6
52
IndAS36 Imploss 3.52

Revised C A 6 52
Illus 18 UDR
DTA 40 DTL 407
80000 60000 401
67500 45
ICI in DM 7500
28000 401 52000 407
31500 45 58500 45 J E
in DTA 3500 in DTA 6500 D T Exp PIL AlCDa 7500
J E TO DM 7500
IE
DTA AC Da 3500 DTA Alc Do 6500
TO D T EXP OCI 3500 TO D TExp PID 6500
 Illus 20A LDR
Tax Rate C g 301 7 78 s CT
FI
Tax Rate Next 4N 8 9 enacted in c g x1 8 DT
321

Calm of taxable Profit 2 Current Tax Expense

Accounting Profit 59,50 000

Add Back
Accounts Deprn 59 50,000
Amortizat 35L 350000
per Ale's
as
ions
loss on TradingInvst 728000017 8050000 770000
whyonly c g
Thaddebts Prov CJ Baddebts 1750000 as PIL is preparedforthey

Inventory obsol C 1 Expapron 378000

Product warranty Exp C y 175000

Prov for health care Ben full Antis of C 1 24.50.000

Penalties 63000
Petrolexp 721000

Deduct
Tax Deprn 72 10,000

Develop cost AmortizathffeneExp alreadydeductedin 4 5

Bad debts Provisionallowed in CY in tax cam 1190000

217000
Product warranty claims paid in C Y
Petrol Exp 9vehicles 7140000 560000

Taxable Profit 9380000

A Tax Rate 30
Current Tax 28 14,000 IE CurrtaxExp PIL 281400

TO warTax liab2814
mÉn Bad debts Prov2Exp allowed in C 7 in tax
30 7 840000
More than Lyrs Debtors Prov 2800000
350000
More than lyr Debtor Prov 1750000 20
1190000

Computation of CA 2 Tax Base É

f
Illus 20 B
Items D T 30 32
Carayfy Taffy

E Adji 4 20.00.000 3.42.50.68 77,7 00 2486,4 5

NIL 6720509
Prod dev Cost Adj2 21 00,000 21,00
Investin Subs NoAdj 1,5400,000 1,5400,000
7280000 7780818 2454087
Trading Invst Adj3 8050008
ᵈTraderelables Adja 19 10,000 2,47 10,000 28,00888 8960087
Net of Baddebts prop
win3
Inventories Adj5 1,06 90,000 1,1270,000 630088 2016087

CCE NOAdj 6300,000 63 00,000

lick
Def Inc Adj 6 1400000 0 Diff will be OTTD NO DT
560880 179208
liab for warranty Adj7 560000 0

Trade Payable NoAdj 2.6740,000 2.6740,000

2450088 784088A
MedicalExp Prov Adjo 24.50.000
Total DTA 23.07.200
Total DM 3,1558,400
DR Net 851200
 WI Tax Base of PPE
Cost Day 5 60,00 000
less DeprnofPriorYrs 1,4560,000
ess Depth C y 7210000

3,42 30,000

The
T B of Traderelables
Caddying Aunt in Ale's 2,19 10,000
Cumulative B D prov in Ale's 45,50 000 add Back full Prov notonlyof C y
as Bls is prepared as on date
Cee cumulative B DProx in Tax
more than 24nska prov
bana hai
281 5 6 agar Cgton
mein ispe
PI ispe more than 9a
20 in 6 7 more than yr 560000 ftp.kj.f jp ifa
30 in 7 8 morethan2am 840000

6 7 C y B DProv Tax

of xp xo more thanlyr 350000

TB of Trade 2,47 10,000

Reable

cure Inventories
A 1,0640,000
7 Till date Prov 630000 Notallowed in Tax

1,12 70,000

Waite Practice illus 20A 20 B 2 20C 2 3

times
exams

IAR.haiBhaisaha.at
 Practical Application

I DT
arising on Busn Comb
PC 43 lakhs
selled Co PurchasingCo Ak Itd
Shahbaz Itd Before OR After DM
CA FI PC 43 PC 43
275 3701
PPE 101 152 NetAsset 30 e MA
Fair value
InvstPrep 5L 81

IntangibleAssets 52 71 GW 13 GW 16
Cas 21 2L 22 afterD t
cash
on BC
v 2L

CA Fair value of Assets liab

Def Tax on Buen Comb IndAS12 Ak ltd
TB sells co carays Aunt
Pitchasing co

AkItdBooks

FY onBun CA ofsellsco

Items CA T B Diff DTA DM 301

PPE 152 10L 5L 1 52 DR

Innist Prop 8L 5L 31 0 91 DM

7h 5L 21 0.61 DTD
Intangible Assets
Cash 2L 2C

Cos 21 21

DT on Bush Comb 31 PM
 v

J E for D T on B C

D T EXP PIL GW 31
Revised GW 131 3L 161C
TO DTL 3L
Ofu logic
Excess
payment of PC oved net assets is

adjusted against GW 2 Not PIL

i DTadising on D on BC
BushComb is also adjustedagainst Glu
make it apart
of NetAssets
acquired

C A Evon B C TB sell Diff

GW 16 0

Diff
c
is other than
Amortizat Separately sale Temp
CA T B
NO DTA DTL

Eg
seller Co Purchasing Co AkHel

selled Co PC 43 lakhs
Shahbaz Itd
CA FV

PPE 101 152

InvstProp 5L 8L

IntangibleAssets 52 71
COS 21 DTA IL IL

F v 2L Cash 21 22
 Glee on BC after D T

PC 431
84
L M3

GW 152

FY onBun CA of sellSco

Items CA T B Diff DTA DM 301

PPE 152 10L 5L 1 52 DR

Innist Prop 8L 5L 31 0 91 DM

7h 5L 21 0.61 DTD
Intangible Assets
Cash 2L 2C

Cos 21 21

DT on Bush Comb 31 PM

In above eg Caux Our learning

If DTAIDM was already exists in sellsco Books then that will also be
taken over by purchasing 10 9 it will become part of NetAssets
DTA IDM adising on BC
Make it a
part of Net Assets
automatically it is adj against GW
 Illus 3 CDR
purchase Consideration 801 250
Ger understand thisafterIndAS103
G Non controller Jut Pending
3 or

I t.me
3
41 Prop
WE 2
Plantae fÉY
Inventory 05

D.TL aemi 1 7 4

Gw 3 6
after D ariss on Burn comb

WI DT arising on Bush Combh

Items c A Failure T 1318841m Diff D t 2o

Prep 18 15 3 06 DM
13 11 2 04 DTL
PlautaEq
05 011 DM
Inventory 3 2.5
1 1 DTL
 Illus 14
D'T on B C Fy oldCA

Item C A TB Diff DT 307

Plant 250 260 10 3 DTA

Inventory 120 125 5 15 DTA

Debtors 200 210 10 3 DTA

75 DTA

cnet.at
E Net Assets FX 4775 Plant Alc DS 250
470 724,7 Inventory AIDS 120
Grew 22.5 Debtory All Do 200
DTA All Do 75
GW Alc DS 22 5

TO 91 Deb 100

TO PC 500
Illus 19
Fin 000s
DT on Burn Comb
arising It
Items CA T B Diff D T 30 40
FV

Fifa Bldg 700 500 200 TTD 80 DTL

PPE 270 200 70 TTD 28 DM

80 100 20 DTD 8 DTA
Inventory
Accounts Relable 150 150
CCE 130 130

lid
Ale's 160 160
payable
Retirementobligation 100 0 100 40 DTA

Net DM 60

Calculation of Gw E in 000s
why 40
DC 1500
1010 originally Assets liab

Yft belong to site season

i Use Tax Rateof Sellarco
Gasset DM

Gw 490
solved Eg 150
If
0

Iii
CASEAI Intention is to use to asset

Item CA T B Diff D.T

150 3ot PPE 70 80 24 DM

PIL OCI

Not asked
Notshown Bifurcation of Diffdue to
Depm a Revaluation

CaseB Intention to sell the asset immediately for 150 Proceedsabove costof100
No taxable

CA TB Diff D.T 301

DPE 150 70 80 9 DR

36817
Sf
Exempt create DT
debove
Proceeds cost
is not taxable
150 100 50 Exempt

o D
i NtDTA DTL
 undistributed Profit 50 CT DT undis Profit
Eg2 Tax Ratediff
Tax Rate 50
distributed Profit 35

CurrentTax Taxable Income 50

100000 501

50000 Curr Tax Exp PIL 50000

TO Curr Tax liab 50000

DT L TaxableTemp Diff 50
40000 507
20000 s Def TaxExp PIL ALC20000
TO DR 20000

On 15ᵗʰ march Div Recognised 10,000

157
Refund of Excess Tax on profits distributed 10000
1500

CarrHax AssetAlc Do 1500

TO Corr Tax Income PIL 1500
 Share Based Payment Rememberthis as a special case
01041 1 Announce 34ns
Ef plan
Vestingperiod 34ns
No of soap
emp
No of shares 100 peremp
FU of share 75 per emp
Tax Books
raut date 0104 1 Noentry thenexpis directly allowed the endof 43

arlend Exp s 100shares 75

soap
34m

7125000

A
Ind AS 12 Hint p
c.INTero
TB Diff D T 30
Effp
shareBased 0 125000 125000 37500
DTD Aways
Payment Future expclaim
481 end
Benefit
i Future lesstax 070 I exp 597s
i
i DTA

9r 2end 0 250000 250000 75000 DTA

Cumulative Exp
till 2ndyr 75k 37500
DTA
TOD T Exp PIL 75k 37500

Yr Bend 3750000 0
why 0 No entry
Iestyr Because in Yrsend
full deduction is D TExp PIL 75000
allowed in tax
i T B becomes NIL TODTA Reverse 75000
 aux for share Based Payment DT Impact
CA Alwayscreate last 9s full DTA Reverse

animszero exp a

Illus 4 CDR

SBP 24ns Vests Period A TB Diff DTA 301

011041 1 Days

31 31 2 art end 0 0.8 0.8 0 24 DTA

H
1612am

É
5 24

31 31 3 482nd 0 0 0 0
Test Noentory
yr
DT Exp PIL 0.24
Ta Expclaimed
Tax Base 0 TO DTA Reverse 02
 Invst in Subs Asse JV Joint control
50 50 15 25 25 251
morethan
20
50 50
stake

Subsidiary
eg Ak Itd purchased 75 stake in BBviatuals Itd on 01 04 41 500corodes
ptarent

ICED

Atc Itd SFS Day

Ale's Innist in BBIH Subs Alc Do 500crores
TO CIB All 500 crores

tax Same J E on Day

Particulars CA TB Diff DTA DM

Invst in Sahs BB 119

Day 500 500

In the year 1 2 BB victuals Itd easned profit of 100 crores

75 of Ak Itd

CA TB Diff DTA DTL 301

ir end 31 03 x2
Invst 575 5,00 75 TTD 22 5 DM
Alc's Inst value 500 75cg Tax Bookprofitonly Diff Reverse
increases bythe
share ofunrealisedprofit on realisation she of Innistby
Di gift Byme Ak ltd to 3ʳᵈpa
Exception
Incase of Invst in Subsidiary Diff Reverse
c
Sale of Invst
Div Dist A
He

AkItd decides Akdecides Nosale

Infist
as Akcontrols 94415T

BBIN Diff
If Both conditions are met then will Not

get reversed
i It will be other than temp Diff

i NO DTA DTL

In case of Assyciate Joint

enthusame
condition
20 501
as Associate
Ak ltd acquired 35 in SK Itd

CA TB Diff
Investin
r create D T
1
SkItd
Exception

Alc Itd other SH If Both are

agreement met then Diffis
that Div win not be other than temp
distributed
And Diff
Nosale of Invst i NO DTA DTL
Note Ellus 9 i last line
These above exceptions are NOT application on NormalInust which is Not
Invest in subs Asse 54

Kaishna Itd 10 Subs Asse J Diff BtwCA 2T B Alwayscreate

eg Invst in

H D'T
even if ques says that there
is No intention of sells the
Inst
QG CAR Total DiffCo2 Differ DT 30
TB ftp.gprnofrevae
Years Ciffreval Catterren Diff TempDiff
compare AUC AUB
BUC
oiloulx 100000 i É o me tooooo 1L

1031 2
90000 135000 NIL 135000 90k 45k 13500 DTL

1 03 73 80000 1200001mm Mil 120000 80k 40k 12000 DM

1 03 74 70000 105000 All 105000 70k 35k 10500 DTL

1031 5 60000 90000 Nil 90000 60k 30k 9000 DM

6 50000 75000 All 75000 50k 25k 7500 DTL
7 40000 60000 Ml 60000 40k 20k 0000 DM
8 30000 45000 MIL 45000 30k 15k 4500 DTL
9 20000 30000 MI 30000 20k 10k 3000 DM
20 10000 15000 MIL 15000 10K 5k 1500 DTL

21 NIL NIL MU 1411 MIL ML MIL

was Cainof Depampa afterReval

styrend 135000 Remains lifegund
Depirpa 15k
p.a