Answer:

Input Tax – Deferred Tax

Input Tax is the taxes charged on the purchase of goods and services, while Deferred Tax is the tax liability that is recognized in the balance sheet of the company. Input Tax is the amount that is paid by the company to the government as part of their purchase of goods and services, while Deferred Tax is the tax that will be paid to the government at a later date.

Input Tax

Input Tax is the tax charged on the purchase of goods and services. It is the amount that is paid by the company to the government as part of their purchase of goods and services. It is also known as Value Added Tax (VAT). The amount of Input Tax that is paid depends on the type of goods and services that are purchased, and the country in which the company is located.

Deferred Tax

Deferred Tax is the tax liability that is recognized in the balance sheet of the company. This is the amount of tax that is due to be paid to the government at a later date. The amount of deferred tax is determined by the amount of taxes that will be due in the future, based on the company’s current financial situation. This amount is calculated by subtracting the current tax rate from the future tax rate.

Difference Between Input Tax and Deferred Tax

The main difference between Input Tax and Deferred Tax is that Input Tax is the tax charged on the purchase of goods and services, while Deferred Tax is the tax liability that is recognized in the balance sheet of the company. Input Tax is the amount that is paid by the company to the government as part of their purchase of goods and services, while Deferred Tax is the tax that will be paid to the government at a later date.

Related Questions

  • What is the difference between Input Tax and Deferred Tax?
  • What is Input Tax?
  • What is Deferred Tax?
  • How is Input Tax calculated?
  • How is Deferred Tax calculated?
  • What are the implications of Input Tax and Deferred Tax?
  • How does Input Tax affect a company’s balance sheet?
  • How does Deferred Tax affect a company’s balance sheet?
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