MAT Credit utilisation
This query is : Resolved
12 July 2011
Respected All,
Whether MAT Credit is optional?
For Example :
Tax liability under normal provisions of Tax = Rs.10 Lacs.
Liability under MAT = Rs.7 Lacs.
Therefore Normal tax to be considered i.e. Rs.10 Lacs.
Advance Tax = Rs.12 Lacs.
MAT Credit available = Rs. 8 Lacs.
Now the question is whether the entire MAT credit can be carried forward in subsiquent years and for the current year Refund to be claimed is Rs.2 Lacs. (Rs.10 lacs - Rs.12 Lacs.) instead of Rs.10 Lacs (ie. Rs.12 Lacs Advance Tax + Rs. 8 Lacs MAT Credit - Rs. 10 Lacs Tax Liability).
Whether MAT Credit is optional?
For Example :
Tax liability under normal provisions of Tax = Rs.10 Lacs.
Liability under MAT = Rs.7 Lacs.
Therefore Normal tax to be considered i.e. Rs.10 Lacs.
Advance Tax = Rs.12 Lacs.
MAT Credit available = Rs. 8 Lacs.
Now the question is whether the entire MAT credit can be carried forward in subsiquent years and for the current year Refund to be claimed is Rs.2 Lacs. (Rs.10 lacs - Rs.12 Lacs.) instead of Rs.10 Lacs (ie. Rs.12 Lacs Advance Tax + Rs. 8 Lacs MAT Credit - Rs. 10 Lacs Tax Liability).
13 July 2011
Rs. 10 lacs shall be the refund amount.
Anuj
0-9810106211
Anuj
0-9810106211
Message likes :
1 times
13 July 2011
Respected Sir,
If assessee don't want to utilise the credit due to excess tax already paid by the company,then can a company do it by carried forward entire MAT Credit?
Further, whether MAT credit is to be utilised in immediate previous year in which tax amt as per other provision exceeds the MAT, or it is optional for the assessee to choose the previous year in next 10 years for utilisation of credit.
If assessee don't want to utilise the credit due to excess tax already paid by the company,then can a company do it by carried forward entire MAT Credit?
Further, whether MAT credit is to be utilised in immediate previous year in which tax amt as per other provision exceeds the MAT, or it is optional for the assessee to choose the previous year in next 10 years for utilisation of credit.
14 July 2011
Without going into legal interpretation of law , it shall be wise for the Company to claim refund of excess tax deposited.
Message likes :
1 times
14 July 2011
Dear Sir,
Thanks for valuable suggestion. But will you please explain me the exact meaning of Section 115JAA (5) which says that brought forward tax credit shall be allowed for any assessment year......
Thanks for valuable suggestion. But will you please explain me the exact meaning of Section 115JAA (5) which says that brought forward tax credit shall be allowed for any assessment year......
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Rental income of jointly held property
- NRI INSURANCE ADVISOR
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
