MAT -Calculation

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CA Anil Jain (Querist)
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28 September 2008 IN MAT Calculation why we less Provision for FBT even when it has not been debited to Profit and loss account.

and Interest on TDS and Income tax is added back but why not Interets on FBT.

Please Clear It.

Rgds/-
Anil Jain

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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29 September 2008 FBT is debited to P & L account only, no doubt.
Actually there is controversy regarding the adding back upto financial year ended 31-03-2008, as there is no mention about adding back of these in the section dealing with MAT.

Ravikumar.G

Ravikumar.G (Expert)
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29 September 2008 Refer the Case Law :
ACIT Vs Balarampr Chini Mills Ltd.14 SOT 372(ITAT-Kol)
FBT and Dividend Distribution Tax are in the nature of expenditure in the hands of the co., for the purpose of accounting. Therefore there should be deducted from profit to ascertain p or L for the purpose of sec 115JB.

Ravikumar.G

Ravikumar.G (Expert)
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29 September 2008 U/s 115JB(2) every co. is required to prepare P & L in accordance with Part II & III of SCH VI to the Co's Act. Therefor, while preparing p&L A/c as per sec 115JB(2) these taxes can be debited above the line and no adjustment will be required.

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