If loss (as per income tax) is computed due to temporary difference i.e depreciation then only having deferred tax liability is created.
If loss (as Per Income tax) is computed permanent difference then there is no deferred tax liability is not created.
so, in this case, deferred tax liability is created. so entry is on 31 march
Profit and loss appropriation Dr
To deferred tax liability
and for next year, this should be reversed.
so entry is
Deferred tax liability Dr
To Profit and loss appropriation A/c |