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Querist : Anonymous

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Querist : Anonymous (Querist)
03 October 2016 Respected All
Suppose A Co. has Profit before Tax-Rs.750000/- & Brought forward losses of Rs.2308323 & Unabsorbed depreciation of Rs4004339.
As per my calculation Co is liable to pay tax as per MAT Rs.142913/- (750000*18.5%+3%)
My question is whether company should make provision for tax Rs.142913 & Mat credit with the same amount?
(i.e. How to show in P/L and Balance Sheet)

Thanking You
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CA SAGAR M. AHUJA

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CA SAGAR M. AHUJA (Expert)
03 October 2016 You have to pass the following entry for Provision for Tax
Profit & Loss Account Dr.
To provision for Tax
And for the payment of MAT by any mode (Advance Tax/Self Assessment tax/TDS)
Advance Tax Account Dr.
TDS Account Dr.
Self Assessment Tax A/c Dr
To Cash/Bank A/c
Means in Balance Sheet in Liability side You have Provision For Tax and Same Way in Asset side You have Income Tax account and that you have to C/f upto utilization in future.
Thanks.
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