annapoorna (Manager) (42 Points)
16 March 20101. Whether we need to pay advance tax for MAT liablity?
2. what are the deductions allowed from book profit for calculation of tax?
3. if i have deferred tax expense (negative-def tax asset) credited to P&L a/c, should i calculate Book profit as the net profit or less the def tax asset from it?
4. can Tax deducted at source be adjusted against the MAT tax liability or tax needs to be paid?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 16 March 2010
You need to pay advance tax for MAT liability also. However TDS can be adjusted against MAT liability. So that much less to pay.
Deferred tax expenses is not an allowable deduction or reduction to book profit u/s 115JB. So if the same has been added to compute book profit the same should be reduced and vice versa
Amir
(Learner)
(4016 Points)
Replied 16 March 2010
Dear Annapoorna,
1) Yes advance tax is required to be paid even under MAT
2)DEDUCTIONS FROM BOOK PROFIT -
i) the amount withdrawn from any reserve or provision
ii) the amount of income to which any of the provisions of 30[section 10 (other than the provisions contained in clause (38) thereof)] or 31[***] section 11 or section 12 apply, if any such amount is credited to the profit and loss account; or
(iia) the amount of depreciation debited to the profit and loss account (excluding the depreciation on account of revaluation of assets); or
(iib) the amount withdrawn from revaluation reserve and credited to the profit and loss account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets referred to in clause (iia); or] 33
(iii) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account.
(viii) the amount of deferred tax, if any such amount is credited to the profit and loss account.
3) DEFERRED TAX ASSET HAS TO BE REDUCED TO CALCULATE BOOK PROFIT
4) Yes, TDS deducted can be adjkusted against MAT Liability.......
saranraj
(CA FINAL)
(419 Points)
Replied 16 March 2010
1. Whether we need to pay advance tax for MAT liablity?
Yes you have to pay. The % of advance tax to be paid is same as per 234A,B and C.
2. what are the deductions allowed from book profit for calculation of tax?
Refer your income tax reckoner, since the list is very long..
3. if i have deferred tax expense (negative-def tax asset) credited to P&L a/c, should i calculate Book profit as the net profit or less the def tax asset from it?
Refer your income tax reckoner
4. can Tax deducted at source be adjusted against the MAT tax liability or tax needs to be paid?
sure.......you can adjust before arriving at the MAT tax liability.
annapoorna
(Manager)
(42 Points)
Replied 16 March 2010
Thanks friends.
Incase i have paid the advance tax though i hace the Tax deducted at source, may i claim the whole of the Tax deducted at source as refund?
annapoorna
(Manager)
(42 Points)
Replied 16 March 2010
also i have Tax deducted at source from previous years as well. how can all those Tax deducted at source can be claimed back for refund. though we have submitted the tax returns claiming for refund every year for the Tax deducted at source we havent receivd the refund yet. what can be done for claiming all the refund?
CAclubindia
