MAT Credit Entitlement

This query is : Resolved

CA. Jyoti Baid (Querist)
Follow

11 May 2010 Respected All,

The company had created MAT Credit Entitlement as an asset and shown under loans & advances in previous years.

In the current year, the company is paying normal taxes and hence utilising the amount of Mat Credit.

what are the journal entries it needs to make in the books of accounts?

AND

What will be the presentation in Balance sheet and in Profit & Loss account?

Regards

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

11 May 2010 Reverse the entry which u passed for creating MAT credit and the balance in MAT credit will be reflected in assets only.

CA. Jyoti Baid

CA. Jyoti Baid (Querist)
Follow

11 May 2010 The entry passed was:
MAT Dr.
To P/L account.

Now I have passed:( as per guidance note on mat)
PFT Dr.(full amount)
To P/L account
MAT (adjusted amount reversed)
To PFT

Is it Coorect or Ihave to reverse MAT through P/L Account

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

11 May 2010 The net effect of both the ways is the same ony on the P & L. Follow the way as shown in the guidance note.

You can pass it thorugh P & L Account also no problem but better to follow guidance note only.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

CA.K.RAMAKRISHNA. PRABHU

CA Aakarsh Jain

Venkateshwaran Ekambaram

Credible HRM

Jayanti Visani

Subscribe Now

MAT Credit Entitlement

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA