S.10a exemption
This query is : Resolved
29 April 2013
Sir/ Madam,
Our client has been registered in Software Technology Park of India (S.T.P.I)in 2007 and we have claimed tax holiday from 2007-2011.
Now, the Dept sends a notice to pay tax on MAT Basis for A.Y.2010-11.
Whether we should pay the tax on MAT Basis and if we pay on mat basis, what is the purpose of giving tax holiday?
Pls solve this query asap bcoz we have received a second reminder from the dept.
Our client has been registered in Software Technology Park of India (S.T.P.I)in 2007 and we have claimed tax holiday from 2007-2011.
Now, the Dept sends a notice to pay tax on MAT Basis for A.Y.2010-11.
Whether we should pay the tax on MAT Basis and if we pay on mat basis, what is the purpose of giving tax holiday?
Pls solve this query asap bcoz we have received a second reminder from the dept.
30 April 2013
As per sec. 115JB For calculating MAT one have to make some adjustment to net profit to convert it into book profit. Up to AY 2007-08 Income exempt u/s 10A & 10B is allowed to deduct from net profit. but then after it is amended and so afterwads company have to pay MAT on it.
But company can carry forward the MAT credit (diff of tax as Per IT and MAT)to the subsequent 10 years and use it in those years if any tax as per IT act is payable.
But company can carry forward the MAT credit (diff of tax as Per IT and MAT)to the subsequent 10 years and use it in those years if any tax as per IT act is payable.
30 April 2013
As per sec. 115JB For calculating MAT one have to make some adjustment to net profit to convert it into book profit. Up to AY 2007-08 Income exempt u/s 10A & 10B is allowed to deduct from net profit. but then after it is amended and so afterwads company have to pay MAT on it.
But company can carry forward the MAT credit (diff of tax as Per IT and MAT)to the subsequent 10 years and use it in those years if any tax as per IT act is payable.
But company can carry forward the MAT credit (diff of tax as Per IT and MAT)to the subsequent 10 years and use it in those years if any tax as per IT act is payable.
Message likes :
1 times
06 May 2013
Thank you very much bijal sir... we are going to pay on MAT basis.
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