can we sett off MAT with normal tax

This query is : Resolved

VIKASH BHALOTIA (Querist)
Follow

14 October 2008 For example:
yr1 yr2 yr3 yr4 yr5
MAT 100 100 100
Normal tax 0 0 0 200 100

Can we sett off the payment of MAT in yr 1 2 3 with yr 4 & 5.

Bharath Kumar

Bharath Kumar (Expert)
Follow

14 October 2008 MAT CREDIT AVAILMENT :
To the extent of MAT paid in excess of the regular tax can be taken as credit and carried forward to the next yr

In this case :
Yr 1 : Excess Credit : Rs.100
Yr 2 : Excess Credit : Rs.100
Yr 3 : Excess Credit : Rs.100

MAT CREDIT UTILISATION
Lower of the following is available for utilization of the credit

(i)MAT credit
(ii) Regular tax - MAT

In the given case we need to know the MAT for Yr 4 and Yr 5 to know the actual set off amount