Mat computation
This query is : Resolved
29 July 2011
Dear Sir
good morning
can you give solution on below doubt?
our book profit Rs.100 lakh
our unabsorbed bus.loss Rs. 40 lakh
MAT computation will be on Rs.100 lakh or Rs.60 Lkhs?
whichever is applicable?
good morning
can you give solution on below doubt?
our book profit Rs.100 lakh
our unabsorbed bus.loss Rs. 40 lakh
MAT computation will be on Rs.100 lakh or Rs.60 Lkhs?
whichever is applicable?
29 July 2011
One of the adjustment to book profit while computing MAT is "deduct unabsorbed depreciation or loss brought forward whichever is less".
If unabsorbed business loss of Rs.40 lacs is pure business loss and not includes any unabsorbed depreciation (i.e. unabsorbed depreciation is "NIL"), then you have to compute MAT on Rs.100 Lacs and not Rs.60 Lacs.
Because in this case unabsorbed depreciation is equal to "0" which is least for deduction from book profit.
If unabsorbed business loss of Rs.40 lacs is pure business loss and not includes any unabsorbed depreciation (i.e. unabsorbed depreciation is "NIL"), then you have to compute MAT on Rs.100 Lacs and not Rs.60 Lacs.
Because in this case unabsorbed depreciation is equal to "0" which is least for deduction from book profit.
29 July 2011
If there is no unabsorbed depreciation as per books of account, book profit in the cited case is Rs. 100/- Pl see explanation (b) to section 115JB(2).
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