28 May 2012
For A.Y.2011-2012 Taxable Income As per Income tax would be nil And Rs.3,00,000 (26,00,000-10,00,000-19,00,000) Unabsorbed depreciation would be carried forward to A.Y.2012-2013.However MAT would be payable Rs.593280 say Rs.6,00,000 would be carried forward next year.
Following entries Should be Passed Profit and loss account Dr Rs.6,00,000 To Provision for income tax Rs.6,00,000
For A.Y.2012-2013
Taxable income would be 52,00,000 (55,00,000-3,00,000 unabsorbed depreciation set off brought forward from A.Y.2011-2012) on which tax @ 30.90% i.e.52,00,000 X 30.90%=16,06,800
58,00,000*19.055% Rs.11,05,190
Hence The company have to Pay Rs.16,06,800 out of which Rs.5,05,190 would be adjusted against MAT credit of Previous year and Balance 11,05,190 has to be paid through Challan.Balance of MAT credit of Rs.94,810 would be available in succeeding year up to A.Y.2021-22
Following entries should be passed MAT Credit A/c. Dr. Rs.5,05,190 To Profit and loss account Rs. 5,05,190 Profit And loss account Dr.Rs.16,06,800 Provision for Income Tax Rs.16,06,800
At the time of Final Assessment
Provision for Income Tax Dr. Rs. 16,06,800 To MAT Credit Rs.5,05,190 To Advance Tax Rs.11,00,000 To Bank Rs. 1,610 (Self assessment tax)
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