Book Profit Tax u/s 115JB of the I.T.Act

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2011 Dear friends

Facts :

The assessee is a Private Limited Company engaged in the business of construction of Residential Apartments. The Company has executed Residential Project and during the financial year 2009-10 the Project is completed.

Exemption u/s 80IB(10) of the I.T.Act has been claimed on the net profit derived from the project as the Project fulfilled all the conditions laid down in the I.T.Act.

Except this the Company has no other Income.

Financial Statment of the Company are prepared as per Schedule VI of the Company Act.

NOW MY QUESTION IS :

The Company is liable to compute Book Profit tax u/s 115JB of the I.T.Act The Company is claiming net profit exemption u/s 80IB(10).

If the company is liable to pay MAT u/s 115JB, the company has not paid any Advance Tax, So the company is liable to workout the Interest u/s 234B & 234C.

Thanks in Advance

K.K.VISWESWARA RAO
Tax Advocate

RANGA SRINIVAS

RANGA SRINIVAS (Expert)

25 April 2011 Dear

Tax as defined in Sec 2(43) is as detailed below:

It includes tax chargeable under the provisions of this act. Hence tax payable under section 115JB is also covered.

Please refer sec 208 which deals with advance tax which says tax payable exceeds Rs. 10000 in a year, advance tax is payable.

Hence in my opinion interest under section 234B and C is payable

regards

“tax” in relation to the assessment year commencing on the 1st day of April, 1965, and any subsequent assessment year means income-tax chargeable under the provisions of this Act, and in relation to any other assessment year income-tax and super-tax chargeable under the provisions of this Act prior to the aforesaid date 22[and in relation to the assessment year commencing on the 1st day of April, 2006, and any subsequent assessment year includes the fringe benefit tax payable under section 115WA] ;]

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

03 May 2011 IN THIS CASE THE MAT WILL HAVE TO BE PAID BECAUSE TAX PAYABLE ON TOTAL INCOME WILL BE LESS THAN MAT
INTT WILL BE PAID SEE DECISION IN Jt. CIT v. Rolta India Ltd. (2011) 37 (I) ITCL 267 (SC)

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