Accounting of mat

A/c entries 2217 views 1 replies

Arpita

Works as an Employee

143 Points Joined October 2010

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)

Sumit Grover

Chartered Accountant

3652 Points Joined September 2008

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