Impact of Deferred Tax on the Right of Return of Goods – Ind AS 12

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By Taxmann
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Last Updated on 24 December, 2024

This document examines the implications of deferred tax under Ind AS 12, Income Taxes for businesses that offer return policies, using a detailed case scenario. It highlights how refund liabilities and the right to recover returned products create temporary differences between accounting and tax bases, necessitating the recognition of Deferred Tax Assets (DTA) and Deferred Tax Liabilities (DTL).

The analysis spans two financial years, presenting journal entries and the net tax liability impact.

To read the complete document and explore the detailed analysis and journal entries.

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Author: Taxmann

The statutory material is obtained only from the authorized and reliable sources
All the latest developments in the judicial and legislative fields are covered
Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
Every content published by Taxmann is complete, accurate and lucid
All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
The golden rules of grammar, style and consistency are thoroughly followed
Font and size that's easy to read and remain consistent across all imprint and digital publications are applied

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Impact of Deferred Tax on the Right of Return of Goods – Ind AS 12

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