02 January 2015
Current Tax as per normal provision is Rs. 812760.00. Tax as per MAT is Rs. 117538.00. Opening Mat Credit is Rs. 235609.00. Now, how much mat can be adjusted in current year and what is the entry in tally for mat.
02 January 2015
SINCE CURRENT TAX IS MORE THAN MAT , YOU ARE LIABLE TO PAY CURRENT TAX , FROM 812760.00 DEDUCT OPENING MAT CREDIT OF RS 235609.00 AND PAY BALANCE
a) P&L a/c dr 812760 To Income tax payable a/c 812760
b) Income tax payable a/c dr 235609 To MAT credit a/c 235609
keep in your mind that MAT credit can be carry forward and set off maximum 10years. So check wheather in the opening balance of MAT any year covered which has lapsed.
CAclubindia
