23 August 2007
In your case definitely MAT as well as Advance tax provision will applicable. MAT is payable on your accouting profit after adjustment of 13 items (+or -) specified of Act. U/S 10A ur company is exempted up to 31.03.09 for regular provision of income tax. for non 10A company will come under normal provision of tax. you had to pay 15 % of tax liability on 15.06.07 now on 15 sep. you should pay 45% of total tax liability.
The company here is only one. And it has two different units, one is a 10 A unit and other is not. Had there been two different companies there was no problem.
How to work out the tax liability under MAT for a company having two different units ismy problem.
The company is filing return setting off loss of non 10 A unit against net profit of 10 A unit and the Balance is then claimed as exemption.
Could any one explain to me with the hypothetical figures as how the working should be done ?
15 November 2007
Hi Jayant Let take two different name for both the unit P = Profit making & claiming exemption Unit N = Non profit & non exemption claiming unit
Let till last years net incomes are P = 50 & N = -40
Let Current year net income before Taxes are P = 10 & N= -6 net income 4 then no question of mat as after eleminating P there is book loss
Second situation P = 10 & N = 4
Then no question of MAT as b/f book loss of unit N
Take another example that there are no b/f loss & fisrt sitation
no question of Mat as loss & in second sitation MAT Profit u/s 115 jb is 4
If there is mat liability then there is no question of Advance Tax
CAclubindia
