Accounting of mat

Can any body guide me how can do accounting entries for MAT in companies books of accounts in current year as well as next year while taking credit?

 

Thanks in advance.

Replies (1)
Let us take an example to understand d same-- Tax as per normal provisions-1 lac Tax as per MAT provisions- 1.5 lacs So, accounting entry will be as follows: Tax expense a/c dr. 100000 MAT credit A/c dr. 50000 Provision for tax cr. 150000 Suppose, in subsequent year Tax as per normal provisions-1.2 lac Tax as per MAT provisions- 1 lacs tax expense a/c dr. 120000 Provision for tax cr. 100000 MAT credit cr. 20000

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