Minimum alternate tax

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2012 A pvt ltd Co had a book loss in accounting year 2010-11. It also has a carry forward loss as per normal provisions of I T Act.
It has a book profit in year 2011-12.
Can book loss of 2010-11 be adjusted against book profit of 2011-12 before computing MAT @ 18.5%?

Pankaj Gupta

Pankaj Gupta (Expert)

13 September 2012 Minimum of the two (as per books) can be adjusted;-
carried forward loss , or unabsorbed depreciation.
In your case there is no unabsorbed depreciation, therefore book loss can't be adjusted.

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2012 Thanks for your response. However request you to clarify by an example.
Suppose Net Loss for 2010-11 as per books in line with Companies Act Schedule VI is Ra 1 lakh before depreciation. Depreciation is say 20000/- So loss after depreciation is 1.2 lakhs. So what amount can be adjusted against book profit of 2011-12?

Pankaj Gupta

Pankaj Gupta (Expert)

14 September 2012 Minimum of the two can be adjusted:-

Loss of 100000 or unabsorbed
depreciation of 20000, whichever less

Hence 20000 shall be adjusted.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now