Mat creadit entitlement accounting
This query is : Resolved
14 June 2012
XYZ CO had paid MAT in the previous year.. the company forget to record the mat credit entiltlement in the previous year.
The MAT Laibility arrise in the previous say 1 lacs out of whih company paid as advance tax 0.5 lacs and balance 0.5 lacs by way of self assessment tax
In the previous the company tax liablity as per Income tax law is zero
So my question can company record the MAT CREDIT entitlement in the current year of Rs 1 lacs by passing of Journal entries
MAT credit A/c Dr 1.00 lacs
TO Advance Tax 0.5lacs
To Self Ass.Tax 0.5lacs
is the above entries passesed is correct or there are any other way to record???
pl reply....
The MAT Laibility arrise in the previous say 1 lacs out of whih company paid as advance tax 0.5 lacs and balance 0.5 lacs by way of self assessment tax
In the previous the company tax liablity as per Income tax law is zero
So my question can company record the MAT CREDIT entitlement in the current year of Rs 1 lacs by passing of Journal entries
MAT credit A/c Dr 1.00 lacs
TO Advance Tax 0.5lacs
To Self Ass.Tax 0.5lacs
is the above entries passesed is correct or there are any other way to record???
pl reply....
14 June 2012
MAT credit entitlement can be taken in a subsequent year wherein the eligibility of receovery is established.
Entry for receording MAT credit entitlement is as follows:
MAT credit Entitlement (Asset) Dr. 1 lac
To MAT Credit (Tax expense in P&L)Cr. 1 Lac
It will redcue the effective tax rate of that particular year.
Entry for receording MAT credit entitlement is as follows:
MAT credit Entitlement (Asset) Dr. 1 lac
To MAT Credit (Tax expense in P&L)Cr. 1 Lac
It will redcue the effective tax rate of that particular year.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Form 121-contradictory opinions
- TDS on Purchase of Immovable Property by NRI from NRI
- Is Personal Guarantee of Director is Compulsory in case of loan to company ??
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
