Mat paid but not made any entries in the books

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Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2013 If Public co. had paid Income tax in MAT of Rs.24 Lakh (FY 12-13), whereas neither made provision for tax in FY 12-13 nor any shown any entry relating to MAT or payment of tax.

Assume that tax as per Income tax is zero because of losses in FY 12-13.

Kindly suggest us what are the entries to be pass in book in FY 13-14 relating to above.

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)

18 October 2013 Firstly recognises MAT Credit in the books as an assets under the head "loans & Advances".

in FY 2013-14, i.e. in the year of set off of credit, the amount of credit availed should be shown as a deduction from the "provision for Taxation" on the liabilities side of the balance sheet.

Under Profit & Loss account, MAT paid is fully charges to P&L A/c. as expenses

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)

18 October 2013 In case of no entry being passed through books in FY 2012-13, then you can pass the same as on adjustment Entry as on 01/04/2013

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2013 If MAT shown in P&L a/c of current year 2013-14, then under prior period item or under income tax expense. Since it is last year tax...

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)

23 October 2013 you should shown MAT credit under provision of income tax as Current tax - MAT credit

-PROVISION OF INCOME TAX
--CURRENT TAX
---MAT CREDIT

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2013 The above said entry is for current year. But I want last year entry to be enter in current year....

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