Mat credit

This query is : Resolved

B Venkatesh (Querist)
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19 October 2015 Whether Mat credit to be Taken before Education cess or after Educationcess

For example:

Taxable income: 1000
MAT credit: 100
I have company Business then my tax will be 30%, SO it is Rs1000*30/100=Rs.300+3%, so its RS.309.

1.If i take MAT credit on Rs300, and then add cess, its (300-100)*1.03=Rs206/-

2.IF i take Mat Credit on Rs.309, then it is RS309-100=Rs.209/-

Which of the above is correct - URGENT.

B Venkatesh

B Venkatesh (Querist)
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26 December 2015 MAT credit is for Tax amount and not for Cess, So we can credit before Cess. In the above problem Option 1 is correct