Mat
This query is : Resolved
abhishekdugar2202
(Querist)
13 August 2012
Dear All,
A Co. has earned book profit of Rs 100
Depreciation as per co Rs 10
Depreciation as per IT Rs 70
Gross Taxable Income Rs 40
Tax Provision (40*30.9%) Rs 12.36
In the above case is MAT applicable as provision for mat on book profit is more than normal tax.?
Please Help
A Co. has earned book profit of Rs 100
Depreciation as per co Rs 10
Depreciation as per IT Rs 70
Gross Taxable Income Rs 40
Tax Provision (40*30.9%) Rs 12.36
In the above case is MAT applicable as provision for mat on book profit is more than normal tax.?
Please Help
14 August 2012
Book profit for the purpose of MAT = 90
MAT = 90*18.5% = 16.65 + cess
Since MAT is higher than normal tax, MAT is applicable and the company will have to pay MAT.
The company is eligible for MAT credit.
MAT = 90*18.5% = 16.65 + cess
Since MAT is higher than normal tax, MAT is applicable and the company will have to pay MAT.
The company is eligible for MAT credit.
abhishekdugar2202
(Querist)
14 August 2012
Thanx... same thing was going in my mind too..
but just had in my mind ki if the difference is because of depreciation then are we to par mat..
but just had in my mind ki if the difference is because of depreciation then are we to par mat..
14 August 2012
As per Section 115JB, book profit is computed after considering depreciation as per Companies Act.
Accordingly, MAT is payable in this case.
Accordingly, MAT is payable in this case.
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