04 March 2019
A Pvt. Ltd. company have losses 80 Lac (Approx) of prior period. No business this year, and around 12 Lac Sundry Creditors to be written off through debit note. Due to this income raised by Rs. 12 Lac. Please advise this profit can be set off with previous losses or MAT eligible in this case, if yes than how much tax liability to be raised.
If you have filed your earlier return on time, loss will be carried forward for set off. In that case, your income tax profit will be Nil in this year. But In MAT, they will consider Book profit for Tax. In that case, Your Book Profit will be Rs 12 Lac. Hence Tax @18.5 % will be applicable. Please check provisions of MAT before proceeding further.
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