MAT CREDIT
This query is : Resolved
24 November 2008
Is any entry required in books for MAT credit or we have to just show in computation
If any entry required what entry
If any entry required what entry
24 November 2008
No need of an entry.
24 November 2008
The MAT credit may be reflected as "MAT CREDIT ENTITLEMENT A/c"
The following entry is to be passed for recognizing the MAT credit as Asset:
MAT Credit Entitlement A/c Dr.
To Profit and Loss A/c
While availing the MAT Credit, the following entry is to be passed:
Provision for Taxation A/c Dr
To MAT Credit Entitlement A/c
MAT credit should be reviewed at each balance sheet date.
While writing down the carrying amount of MAT Credit entitlement, the following entry is to be passed:
Profit and Loss A/c Dr.
To MAT Credit Entitlement A/c
The difference between MAT paid and MAT Credit Entitlement can be treated as tax paid during the year.
The following entry is to be passed for recognizing the MAT credit as Asset:
MAT Credit Entitlement A/c Dr.
To Profit and Loss A/c
While availing the MAT Credit, the following entry is to be passed:
Provision for Taxation A/c Dr
To MAT Credit Entitlement A/c
MAT credit should be reviewed at each balance sheet date.
While writing down the carrying amount of MAT Credit entitlement, the following entry is to be passed:
Profit and Loss A/c Dr.
To MAT Credit Entitlement A/c
The difference between MAT paid and MAT Credit Entitlement can be treated as tax paid during the year.
24 November 2008
I stand corrected.
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