MAT Payment on Unrealised FOREX provision
This query is : Open
CA Ashish Vaidya
(Querist)
09 September 2009
I have a specific case in which we have to make provision for FOREX gains for bank balances in forein currency as on 31st march 2009.
Accordingly should we take the said FOREX gain as taxable while computing the tax liability. the company has its other income exempt under section 10A. when i see the MAT provisions it has not excluded the FOREX anywhere so i have to ask the client to pay tax on this unrealised forex gain.
Please let me know whether my treatment is correct. reference to case laws and sections will be appreciated.
I have a specific case in which we have to make provision for FOREX gains for bank balances in forein currency as on 31st march 2009.
Accordingly should we take the said FOREX gain as taxable while computing the tax liability. the company has its other income exempt under section 10A. when i see the MAT provisions it has not excluded the FOREX anywhere so i have to ask the client to pay tax on this unrealised forex gain.
Please let me know whether my treatment is correct. reference to case laws and sections will be appreciated.
CA. Bikash Bogi
(Expert)
09 September 2009
It should be chargable under business head. Refrence should be taken in SC decesion in case of woodword governor india ltd april,2009
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