MAT

This query is : Resolved

Share Report Follow Query Ask a Query

Manoop V M

Manoop V M (Querist)
Follow

11 September 2009 Hw MAT calculated..?

Thank U...

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

11 September 2009 (2) Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI34 to the Companies Act, 1956 (1 of 1956) :

Provided that while preparing the annual accounts including profit and loss account,â€”

(i) the accounting policies;

(ii) the accounting standards adopted for preparing such accounts including profit and loss account;

(iii) the method and rates adopted for calculating the depreciation,

shall be the same as have been adopted for the purpose of preparing such accounts including profit and loss account and laid before the company at its annual general meeting in accordance with the provisions of section 210 of the Companies Act, 1956 (1 of 1956) :

Provided further that where the company has adopted or adopts the financial year under the Companies Act, 1956 (1 of 1956), which is different from the previous year under this Act,â€”

(i) the accounting policies;

(ii) the accounting standards adopted for preparing such accounts including profit and loss account;

(iii) the method and rates adopted for calculating the depreciation,

shall correspond to the accounting policies, accounting standards and the method and rates for calculating the depreciation which have been adopted for preparing such accounts including profit and loss account for such financial year or part of such financial year falling within the relevant previous year.

Explanation.â€”For the purposes of this section, â€œbook profitâ€ means the net profit as shown in the profit and loss account for the relevant previous year prepared under sub-section (2), as increased byâ€”

(a) the amount of income-tax paid or payable, and the provision therefor; or

(b) the amounts carried to any reserves, by whatever name called 35[, other than a reserve specified under section 33AC]; or

(c) the amount or amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities; or

(d) the amount by way of provision for losses of subsidiary companies; or

(e) the amount or amounts of dividends paid or proposed ; or

(f) the amount or amounts of expenditure relatable to any income to which 36[section 10 (other than the provisions contained in clause (38) thereof) or 37[section 10A or section 10B or] section 11 or section 12 apply; or]

38[(g) the amount of depreciation,]

39[if any amount referred to in clauses (a) to (g) is debited to the profit and loss account, and as reduced byâ€”]

40[(i) the amount withdrawn from any reserve or provision (excluding a reserve created before the 1st day of April, 1997 otherwise than by way of a debit to the profit and loss account), if any such amount is credited to the profit and loss account:

Provided that where this section is applicable to an assessee in any previous year, the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of April, 1997 shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions (out of which the said amount was withdrawn) under this Explanation or Explanation below the second proviso to section 115JA, as the case may be; or]

(ii) the amount of income to which any of the provisions of 41[section 10 (other than the provisions contained in clause (38) thereof)] or 41a[section 10A or section 10B or] section 11 or section 12 apply, if any such amount is credited to the profit and loss account; or

42[(iia) the amount of depreciation debited to the profit and loss account (excluding the depreciation on account of revaluation of assets); or

(iib) the amount withdrawn from revaluation reserve and credited to the profit and loss account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets referred to in clause (iia); or]

43[(iii) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account.

Explanation.â€”For the purposes of this clause,â€”

(a) the loss shall not include depreciation;

(b) the provisions of this clause shall not apply if the amount of loss brought forward or unabsorbed depreciation is nil; or]

(iv) the amount of profits eligible for deduction under section 80HHC, computed under clause (a) or clause (b) or clause (c) of sub-section (3) or sub-section (3A), as the case may be, of that section, and subject to the conditions specified in that section; or

(v) the amount of profits eligible for deduction under section 80HHE computed under sub-section (3) or sub-section (3A), as the case may be, of that section, and subject to the conditions specified in that section; or

(vi) the amount of profits eligible for deduction under section 80HHF computed under sub-section (3) of that section, and subject to the conditions specified in that section; or

(vii) the amount of profits of sick industrial company for the assessment year commencing on and from the assessment year relevant to the previous year in which the said company has become a sick industrial company under sub-section (1) of section 1744 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) and ending with the assessment year during which the entire net worth of such company becomes equal to or exceeds the accumulated losses.

Explanation.â€”For the purposes of this clause, â€œnet worthâ€ shall have the meaning assigned to it in clause (ga) of sub-section (1) of section 345 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now