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+--- Thread: Deferred Tax Regarding Depreciation (/showthread.php?tid=59)
Deferred Tax Regarding Depreciation - khawerjavedqazi - 05-05-2003
I know the calculation of deferred tax with relaised net profit,but unfortunately I do'nt know the calculation of deferred tax with the Depreciation.
My confusion is how an asset can be depreciated for more time than it is used
It is confusing in the book of Miegs & Miegs
Thanks
Dear Asif Bhai
My question was that
1---- Deferred Tax Regarding Net Profit<b></b>
it was that tax will be levied on the income realised or profit realised and the unrealised profit will be deferred for the tax purposes of the next period.
2---- Deferred Tax Regarding Depreciation<b></b>
It was that tax will be levied on the profit less the amount acceleratedly depreciated."What is this accelerated depeciation"?
and on what basis it is done?
Edited by - khawerjavedqazi on May 08 2003 51816 PM
- Asif - 05-08-2003
mere bhai I think u r confused can u plz. explain a little bit more,
Deferred Tax is the tax on the differnce between the Carrying Value of the asset and its Tax base( amount attributable for tax purposes).
It has nothing to concern with Net profit.
Plz. yar Explain ur question a bit more.
Thanx
Muhammad Asif Masood
for islam see,
www.dawateislami.net