MAT Credit

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Angad Pal Singh (Querist)
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27 February 2011 As per section 115JAA, tax credit is available on any tax paid under section 115JB. When we pay tax under section 115JB, the education cess on such tax is not as such an amount paid under section 115JB, because section 115JB talks of 18% ie basic tax only. So, is it correct in interpreting that tax credit available is only the 18% amount and not the 3% education cess paid thereon?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 March 2011 The words used in section 115JB(1) is 'income tax' whereas in 115JAA(1A) is 'any amount of tax'. In view of the differentiation, my understanding is credit can be availed for 18.54%.

Angad Pal Singh

Angad Pal Singh (Querist)
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07 March 2011 thanks for giving ur time sir but not convinced with ur interpretation. Although I've put this question to many CAs and got an affirmed reply to my interpretation.
Education Cess is not paid under Section 115JB and hence it cannot be taken credit off under Section 115JAA. Section 115JAA doesnt say "any amount of Tax" but it says "any amount of Tax under section115JB"

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