Mat credit under section 115ja
This query is : Resolved
CA Sanjay Baheti
(Querist)
10 June 2013
One of my corporate client has computed MAT Liability under section 115JB of I.T. relevent to Astt.Year 2013-14 as Tax Liability as per Income tax Act comes to NIL due brought forward Business loss & Unabsorbed Deprecation of earlier years so MAT Provision is applicable to company.
For Example MAT Liability is Rs.80000/- under Section 115JB of I.T.Act. relevant to Asstt.Year 2013-14. TDS Receivable on Interest received/Job Charges for the same Asst year Rs.93000/- Now query is whichever option is better from tax point of view as under:-
i) Either No MAT Laibility is to be paid & adjusted against TDS Rceivable and balance amount to be claimed as refund in I.T. Return. or
ii) MAT Liability of Rs.80000/- is to be paid in the current Asstt.year & claimed Refund of entire Rs.93000/-as TDS Receivable & this MAT Tax so Paid can be set off as credit in subsequent year as and when the tax liability arises as per I.T. Act.
Please reply at the earliest.
Regards
For Example MAT Liability is Rs.80000/- under Section 115JB of I.T.Act. relevant to Asstt.Year 2013-14. TDS Receivable on Interest received/Job Charges for the same Asst year Rs.93000/- Now query is whichever option is better from tax point of view as under:-
i) Either No MAT Laibility is to be paid & adjusted against TDS Rceivable and balance amount to be claimed as refund in I.T. Return. or
ii) MAT Liability of Rs.80000/- is to be paid in the current Asstt.year & claimed Refund of entire Rs.93000/-as TDS Receivable & this MAT Tax so Paid can be set off as credit in subsequent year as and when the tax liability arises as per I.T. Act.
Please reply at the earliest.
Regards
10 June 2013
According to my view, adjust mat with t.d.s. and claim 13000 refund. you may be not adjust mat in future. due to high profit.
CA PARAS BAFNA
(Expert)
10 June 2013
In my view, by adjusting TDS against MAT liability , the assessee company would still continue to enjoy the benefit of MAT Credit.
.
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