S.10a exemption

This query is : Resolved

Raghu Ram V.V (Querist)
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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.

CA Bijal Shah

CA Bijal Shah (Expert)
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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.

CA Bijal Shah

CA Bijal Shah (Expert)
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Message likes : 1 times

Raghu Ram V.V

Raghu Ram V.V (Querist)
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06 May 2013 Thank you very much bijal sir... we are going to pay on MAT basis.

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