Deferred tax in mat

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phoebe (Querist)
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13 September 2013 company has a profit as per p&l account is 11000000,
depreciation as per company is 15000000, depreciation as per income tax is 25000000,
what will be the book profit under 115JB, should i add the deferred tax back for this,
what will be the basis?
thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 September 2013 Deferred tax liability provided as per AS-22 need not be added back to the net profit to arrive at the "book profit" u/s 115 JB for the purpose of working out the MAT liability.

Reason is :-
Point (a) of the Explanation(1) containing list of items to be added back do not say about DTL.

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phoebe

phoebe (Querist)
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13 September 2013 Dear Sir, my understanding is
the deffered tax liability is a provision which is normally deducted from the profitand loss account so the deffered tax liability is a provision which need to be added back to the profit for calculation of book profit, deffered tax asset provision is normally added to the profit and loss account so it should be deducted from profit and loss account for calculation of the book profit.

Am i right?

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