Deffered Tax Rate

[krishna besta]

Dear All,

 

Please help me for calculating Deffered Tax liability for a company when book profits is exceeds 1 Crore.

Deffered tax rate is added Surcharge @ 5% or not when exceeds book profits 1 Crore

 

 

Regards,

Krishna.B

[CAGOPALJI AGRAWAL]

It should be measured using the tax rates and tax laws that have been enacted by balance sheet date. Since the company is already having the book profit exeeding 1 crore so surchage should be added for the purpose of deferred tax laibility measurement.

AI Summary

Deferred tax measurement: include enacted tax rates and applicable surcharge when book profits exceed the statutory threshold. Measure deferred tax using the rates and provisions enacted by the balance sheet date; where the company's book profits surpass the relevant threshold, include the applicable surcharge when calculating deferred tax liability.