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Deferred Tax Calculation when tax paid under MAT

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Under MAT calculation depreciation as per books is allowed as expense for calculating book profit. As a result no temporary difference would arise in the year in which tax is paid as per MAT.
In such case do we have to calculate Deferred Tax income or expense in the year in which tax is paid as per MAT?
Replies (1)
Deferred tax is always calculate on the differences between the book profits and tax profit. here is tax profit means the taxable profit under the normal provsions of income tax act. If company is required to Tax under MAT then the difference between the tax as per normal provsions and tax as Mat provision will be recognised as MAT credit under the books if virtual certainty is exists.


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