MAT Credit

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This query is : Resolved

Rushi (Querist)

16 July 2011 A Company has Paid Tax computing his total income Under MAT in the A.Y. 2003-04. But inadvertently company has paid MAT on subsidy income, which was exempt from tax under MAT. The assessment order has been received by company in F.Y.2005-06 for the return filed for A.Y. 2003-04. Now company has recognized that they had paid excess MAT on account of subsidy income. As on date the time of rectification u/s 154 has also been lapsed.

So how can company claim the excess paid amount on account of MAT.

Further as on date company has carry forward MAT credit. So company required the excess paid MAT in Cash rather than to add in carry forward MAT Credit.

CA Navin Jain

CA Navin Jain (Expert)

16 July 2011 if u are being paid the tax in future then carry forward MAT Credit.

Message likes : 1 times

Rushi

Rushi (Querist)

16 July 2011 So if company is not able to set off the MAT credit in future within the prescirbed time limit it would be forfeited. So there is no scope to get it in cash.

CA Navin Jain

CA Navin Jain (Expert)

16 July 2011 yes, there is no provision to get in cash

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