The Tax Preparation Blog

Archive for the ‘Tax Accounting’ Category

Questions And Answers April 12

1. Hon PHIL GOFF (Leader of the Opposition) to the Prime Minister : Does he have confidence in his Minister of Finance?

Accounting for Marketable Securities

Question: How much percentage should we pay as a Professional Tax from our salary in chennai? Pls let me know.?

How much percentage should we pay as a Professional Tax from our salary in chennai? Pls let me know. i cld not get the proper detail from the web search. pls help me to find out this.

Answer: It will depend upon your yearly income.

KIT digital Reports First Quarter 2011 Results

Q1 2011 Revenue Up 98% Overall and Up 38% Organically Year-Over-Year to $34.5M, Driving 139% Increase in EBITDA to Record $7.1M

Prescient Global Fds – Changes to the Company and the Funds

Prescient Global Fds – Changes to the Company and the Funds

Question: Is it correct to say that DT arise as a result of differend treatment of income and expense from tax point . ?

For example, depreciation for tax purposes is differend from accounting depreciation. If yes, then is it also correct to state that deferred tax can not be applied to the full carrying amount of fixed asset. It is only on the depreciation expense amount which is differend.

Answer: Yes. DTL arises due to timing differences between expense recognition for tax purposes and for book purposes.

For tax purposes, you use accelerated depreciation. This causes larger deductions (depreciation expenses) in the early years. Thus, your taxable income in the initial years will be lower. In the later years, your deductions will be lower, and the taxable income will be higher. This creates a liability for future taxes (DTL). What in effect you are doing is postponing taxes.

Say, for accounting purposes, you use straight-line depreciation. In the initial years, your deductions (depreciation expenses) will be smaller. So, your reported income will be higher. Correspondingly, reported tax expense in the income statement will be higher, than the actual taxes paid. The difference is carried over as a deferred tax liability.

In other words, for book purposes the expenses are capitalized and recognized in later periods. In later periods your book income will be lower than reported taxable income. So, whey you actually pay those taxes in the future, you remove the liability (DTL) from the books.

Bidtimes PLC – Proposed acquisition of PowerHouse Energy, Inc.

Bidtimes PLC – Proposed acquisition of PowerHouse Energy, Inc.

House Session 2011-03-01 (10:01:03-11:02:54)