MAT
This query is : Resolved
14 October 2009
I'd like to know whether we are required to deduct deferred tax liability from Book profit and thereafter go about in calculation of MAT?
In my reckoner, it's given that to the book profits, you'll have to add Amount of depreciation(from AY 2007-08) and subtract amount of depreciation debitted to P & L Account.
Can someone throw more light on this.
Thanks to one and all visiting the thread.
In my reckoner, it's given that to the book profits, you'll have to add Amount of depreciation(from AY 2007-08) and subtract amount of depreciation debitted to P & L Account.
Can someone throw more light on this.
Thanks to one and all visiting the thread.
Deepak Agrawal
(Expert)
14 October 2009
Its because, you have to consider depreciation as per income tax act instead of companies act.
14 October 2009
Please be clear/precise. I cant understand a word. I'm new to Income tax, so please be as clear as possible.
Nevertheless, thank you for taking time out and replying.
Nevertheless, thank you for taking time out and replying.
Aditya Maheshwari
(Expert)
20 October 2009
Deferred tax liability is not an allowable reduction for the purpose of computation of MAT.
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