29 March 2012
MAT is income tax paid in case of regular tax liability is lower than tax liability calculated on book profit and credit of which is available in succeeding year/(s) when the situation is reverse of as above said.(Subject to Compliance with Section 115JB).
It is accounted as charged to P&L account in the year of payment and crediting the P&L account in the year of avail of MAT credit as per AS-22.
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