MAT Loss adjustment
This query is : Resolved
23 November 2010
Under MAT, for the FY07-08, the Profit (before Depreciation) was 20 lacs. The Depreciation was Rs. 60 lacs. After Dep, there was loss of (20-60)= 40 lacs.
In this case what amount shall be c/f for next year as book loss or unabsorbed dep to be set off against book profit of next year under MAT?
I hv seen one para as below:
Where an assessee has (before allowing dep.) shown profit in any FY, but after adjustment of dep, the same results into loss, no adjustment in book profit is allowed as although there is unabsorbed dep of that year but b/f loss in this case shall be nil.
In this case what amount shall be c/f for next year as book loss or unabsorbed dep to be set off against book profit of next year under MAT?
I hv seen one para as below:
Where an assessee has (before allowing dep.) shown profit in any FY, but after adjustment of dep, the same results into loss, no adjustment in book profit is allowed as although there is unabsorbed dep of that year but b/f loss in this case shall be nil.
24 November 2010
WHILE CALCULATING THE MAT LIABILITY
BOOK PROFIT WILL BE CALCULATED AFTER SET OFF THE WHICHEVER LOWER OF BOOK LOSS OR UNABSORBED DEPRECIATION.
IN UR CASE UNABSORBED DEPRECIATION IS RS. 40LACS AND BUSINESS LOSS IS NIL. THEREFORE, YOU CAN NOT SET OFF ANY AMOUNT AGAINST BOOK PROFIT.
BOOK PROFIT WILL BE CALCULATED AFTER SET OFF THE WHICHEVER LOWER OF BOOK LOSS OR UNABSORBED DEPRECIATION.
IN UR CASE UNABSORBED DEPRECIATION IS RS. 40LACS AND BUSINESS LOSS IS NIL. THEREFORE, YOU CAN NOT SET OFF ANY AMOUNT AGAINST BOOK PROFIT.
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
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Copyright software
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- FORM 26A APPLICABILITY
- Multiple trade mark
- Transporter Declaration form
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
