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A Must Read Question

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CA.Sonia

professional

517 Points Joined January 2009

Hello To All,

Wanted to Ask you one more question if hospital has excerised the deduction u/s.35 AD they will be able to claim all the capital expenditure at once and can carry forward the loss to the follwing years till the loss is set off ?

1.Do we need to calculate deffered Tax Liablity?
2.Consequences after setoff of loss as they would be higher tax liablity as they can not claim Depreciation?
3.MAT applicablity?

With Regards,
CA.Sonia Nankani

Replies (1)

Guest

1.Do we need to calculate deffered Tax Liablity?

I think yes as it is timming difference because in Income Tax deduction will be allowed in the year of expenditure where as in Accounts expenditure by way of depreciation will be claimed over the life of assets.

3.MAT applicablity?

MAT is applicable only in case of companies and generally hospitals are run under a trust. If it is company then MAT provisions shall be applicable as no corrosponding amendment has been made in calculation of book profits.

2.Consequences after setoff of loss as they would be higher tax liablity as they can not claim Depreciation?

I cannot understand what do you want to say