MAT u/s 115JB

This query is : Resolved

CA NITIN KHODE (Querist)
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11 October 2007 please confirm that book profit as per bookes of accounts, should we consider the profit after tax and after adjustment of FBT and deferred Tax or before adjustment.

Ravikumar.G

Ravikumar.G (Expert)
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11 October 2007 Net profit before tax is to be considered as Book profit for MAT purpose. (Below the lines are not considered)

Meanwhile FBT is not an allowable expenditure as per IT act. However for the purpose of MAT tax u/s 115JB FBT is an allowable expenditure.

CMA Gul S

CMA Gul S (Expert)
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12 October 2007 From that Book profit, Co's Act Depreciation added back and IT depreciation is lessen. From that profit Income tax @ 30% is calculated.