MAT in case of merger

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ramesh vadnala (Querist)
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29 May 2010 appointed date 1.4.09 and effective date yet to be given by the high court. for creation of provision for taxation(MAT) for the f.y.2009-10, shall consider the losses of transfering company for the f.y.2009-10 or shall wait for untill the court order and to make provision in the year of effective date.. Please clarify

taxindiaconnect

taxindiaconnect (Expert)
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29 May 2010 If the court application has been filed, pending court approval you are preparing the books of accounts of the company, what you are following for other matter should follow for the tax provision also. If you are preparing the books as if the merger has taken place ( Consolidated accounts for all the companies), then you consider the brought forward loss of the merging company also for tax provision purpose. If not ( Individual accounts ), then you should prepare the different provisions in different companies. In case the effective date is approved by court before last date of filing of income tax return, in that case you need to prepare the tax return considering that the merger has taken place.

ramesh vadnala

ramesh vadnala (Querist)
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29 May 2010 Thank u Mr. Rajesh

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