Can anyone please help me with this query ??
Tax as per normal provisions = 0
MAT= 3 lacs
MAT Credit availble = 1 lac.
What will be the accounting treatment for this ??
Ekta Agarwal (Accounts Executive) (42 Points)
14 January 2013Can anyone please help me with this query ??
Tax as per normal provisions = 0
MAT= 3 lacs
MAT Credit availble = 1 lac.
What will be the accounting treatment for this ??
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 14 January 2013
Tax expense A/c Dr. 3,00,000
To Provision for tax A/c 2,00,000
To MAT Credit A/c 1,00,000
Ekta Agarwal
(Accounts Executive)
(42 Points)
Replied 14 January 2013
Thankyou sumit for replying
But according to me, we willhave to pay Rs 3 lacs and agn get the MAT credit for same..the credit available for Rs 1 lac will stand as it is and the a/c will get debited by more Rs 3 lacs amounting to balance of Rs 4 lacs..
We wont be able to avail the credit entitlement as it is posbl only in the case when tax as per normal provisions is greater than MAT.
here the case is not so..
Our MAT Credit will inc. by Rs 3 lacs..
and since we have to route it through P/L A/c, the entry wud be followed as :
1. P/L A/C Dr. 300000
To Prov. for Tax 300000
2. MCE Dr. 300000
To P/L A/C 300000
MCE op. bal= 100000
Add.= 300000
Total MCE available = 4 lacs
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 14 January 2013
Ya, right, I forgot to take the credit of this year..
The Entry for teh same would be
Mat Credit A/c Dr. 3,00,000
TO Provisions for Tax A/c 3,00,000
Ekta Agarwal
(Accounts Executive)
(42 Points)
Replied 14 January 2013
Yeah exactly bt combined entry cannot be shown....it shud be routed thru P/L A/C
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 14 January 2013
Well, ya.....and the same should be shown as a separate line item therein P&L A/c
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 14 January 2013
|
1. P/L A/C Dr. 300000 To Prov. for Tax 300000 2. MCE Dr. 300000 To P/L A/C 300000 MCE op. bal= 100000 Add.= 300000 Total MCE available = 4 lacs |
||
Animesh
(Tax Consultant)
(62 Points)
Replied 01 September 2014
Dear Sir, Can you please solve my query.
Tax as per provisions = Rs.480547
MAT Liability= 308848
TDS = 498748
Will I get benefit of MAT credit
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
