Deferred tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2011 If a company pays MAT for year 2010-11,then while calculating defered tax liability ,which tax rate to be alpplied?MAT or normal rate of tax?

Also if normal rate is applied will it be 30+ surcharge+cess or 30.09%. since the company is having loss as per income tax. pls advise

CA Navin Jain

CA Navin Jain (Expert)
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22 August 2011 Normal Rate Of TAX

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2011 Pls let me know will it be including surcharge or not?.............. for 2010-11 the company has incurred loss

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 August 2011 my view since company incurred loss, no need to calculate surcharge, only Income tax & cess need to calculated

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 August 2011 If the company thinks that the taxable profits in future year would exceeds Rs. 1 cr after setting off losses then consider surcharge for the rate otherwise not.

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2011 thanks Mr. Aditya

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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22 August 2011 According to AS-22 in case of MAT Tax, defered tax liability/Assets will be difference between Tax as per Accounting income and Tax on Normal Rate Of TAX.

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