| Originally posted by :Guest | ||
| " | Please Send it to me also..... Thanks in Advance, Chirag. |
" |
pls any body give me MAT Calculation table.
Sandeep Thakur
(artical)
(26 Points)
Replied 17 September 2008
| Originally posted by :Guest | ||
| " | plz send me the mat table too | " |
Sandeep Thakur
(artical)
(26 Points)
Replied 17 September 2008
Please send this table to me also
and tell me, what is the treatment of FBT while calculate Book Profit.
| Originally posted by :Nitesh Jain | ||
| " | The MAT is charged at 10% of Book Profit. Meaning of Book Profit: The Net Profit as shown in Profit & Loss Account as per Companies Act, 1956 As increased by, a) The amount of Income tax paid or payable or provisions therefore. (Deferred Taxation:- Section 2(43) defines ‘Tax’ as income tax chargeable under the provisions of Income Tax Act. Further deferred tax provision is not in the nature of provision for meeting any liability, which is not ascertained. Therefore, the deferred tax provision in the account is neither a liability for the purpose of clause(a) nor in the nature of provision for meeting any unascertained liability for the purpose of clause (c) of the Explanation to section 115JB. It represents only a necessary accounting adjustment as per AS 22 to fall in line with the matching principle of accounting. Therefore, the Provision for deferred tax charged to P & L account cannot be added.) b) The amount carried to any reserves other than a reserve specified U/s. 33AC. c) The amount of provisions made for meeting liabilities, other than ascertained liabilities. Examples of Ascertained Liabilities • Provision for Leave Encashment • Provision for Gratuity made as per actuary • Provision for Sales tax, Service tax, excise duty, etc. Examples of Unascertained Liabilities • Provision for gratuity on ad-hoc basis • Provision for warranty/contingency/future losses/ doubtful debts d) The amount by way of provision for losses of subsidiary companies. e) The amount of dividends paid or proposed f) The amount of expenditure related to any income to which Section 10[other then the provision contained U/s. 10(38)] or Section 10A or 10B or Section 11 or Section 12 apply. g) The amount of depreciation. If any amount referred to in clause (a) to (g) is debited to the Profit and Loss account, and As reduced by, a) The amount withdrawn from any reserve or provisions if any such amount is credited to P. & L. Account. Provided that in respect of Reserve created or Provisions made on or after 01-04-1997; The amount withdrawn shall be reduced from the Book Profit only if, (i) Such amount is credited to P. & L. A/c. and (ii) The Book Profits of the year of creation of Reserve or Provision has been increased by such amount. b) The amount of income to which any of the provisions of Section 10[other then the provision contained U/s. 10(38)] or Section 10A or 10B or Section 11 or Section 12 apply, if any such amount is credited to the P. & L. Account. c) The amount of depreciation debited to the Profit and Loss Account(excluding the depreciation on account of revaluation of assets) d) The amount withdrawn from revaluation reserve and credited to the P. & L. Account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets referred to in clause (c) e) The amount of loss brought forward or unabsorbed depreciation, which ever is less as per books of account. Note: Loss shall not include depreciation. f) The amount of profits of sick industrial company for the year commencing from the year in which the said company has become a sick industrial company under the relevant Act and ending with the year in which the entire net worth of such company becomes equal to or exceeds the accumulated losses. The remaining Balance is your book profit. It is to be charged at 10%+Surcharge+EC+HEC. |
" |
CA Chirag
(vvvvvvv)
(34 Points)
Replied 24 September 2008
Hello,
Do we need to calculate interest U/s 234B & 234C in case of MAT liability???
Thanks in advance,
Chirag
abhay singh
(student of ca final)
(26 Points)
Replied 27 September 2008
| Originally posted by :Guest | ||
| " | pls send MAT Computation & Deffered tax calculation |
" |
Vijay Kalia
(Chartered Accountants)
(1705 Points)
Replied 12 October 2008
|
I would like to add that the provision for doubtful debts or other provision for that matter need not be added on form but on substance and it need not be on blanket basis.In this regard I cite following judgment of the Supreme Court with regard to Provision for Bad Debts where held not addible read with S.115JB/Item(c) of Explanation to the Section. HCL Comnet 292ITR 299 and reference also made to Hewlett Packard case of Delhi High Court 171 Taxman13. V.K.Kalia Originally posted by :Nitesh Jain |
||
| " | The MAT is charged at 10% of Book Profit. Meaning of Book Profit: The Net Profit as shown in Profit & Loss Account as per Companies Act, 1956 As increased by, a) The amount of Income tax paid or payable or provisions therefore. (Deferred Taxation:- Section 2(43) defines ‘Tax’ as income tax chargeable under the provisions of Income Tax Act. Further deferred tax provision is not in the nature of provision for meeting any liability, which is not ascertained. Therefore, the deferred tax provision in the account is neither a liability for the purpose of clause(a) nor in the nature of provision for meeting any unascertained liability for the purpose of clause (c) of the Explanation to section 115JB. It represents only a necessary accounting adjustment as per AS 22 to fall in line with the matching principle of accounting. Therefore, the Provision for deferred tax charged to P & L account cannot be added.) b) The amount carried to any reserves other than a reserve specified U/s. 33AC. c) The amount of provisions made for meeting liabilities, other than ascertained liabilities. Examples of Ascertained Liabilities • Provision for Leave Encashment • Provision for Gratuity made as per actuary • Provision for Sales tax, Service tax, excise duty, etc. Examples of Unascertained Liabilities • Provision for gratuity on ad-hoc basis • Provision for warranty/contingency/future losses/ doubtful debts d) The amount by way of provision for losses of subsidiary companies. e) The amount of dividends paid or proposed f) The amount of expenditure related to any income to which Section 10[other then the provision contained U/s. 10(38)] or Section 10A or 10B or Section 11 or Section 12 apply. g) The amount of depreciation. If any amount referred to in clause (a) to (g) is debited to the Profit and Loss account, and As reduced by, a) The amount withdrawn from any reserve or provisions if any such amount is credited to P. & L. Account. Provided that in respect of Reserve created or Provisions made on or after 01-04-1997; The amount withdrawn shall be reduced from the Book Profit only if, (i) Such amount is credited to P. & L. A/c. and (ii) The Book Profits of the year of creation of Reserve or Provision has been increased by such amount. b) The amount of income to which any of the provisions of Section 10[other then the provision contained U/s. 10(38)] or Section 10A or 10B or Section 11 or Section 12 apply, if any such amount is credited to the P. & L. Account. c) The amount of depreciation debited to the Profit and Loss Account(excluding the depreciation on account of revaluation of assets) d) The amount withdrawn from revaluation reserve and credited to the P. & L. Account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets referred to in clause (c) e) The amount of loss brought forward or unabsorbed depreciation, which ever is less as per books of account. Note: Loss shall not include depreciation. f) The amount of profits of sick industrial company for the year commencing from the year in which the said company has become a sick industrial company under the relevant Act and ending with the year in which the entire net worth of such company becomes equal to or exceeds the accumulated losses. The remaining Balance is your book profit. It is to be charged at 10%+Surcharge+EC+HEC. |
" |
Vijay Kalia
(Chartered Accountants)
(1705 Points)
Replied 12 October 2008
The additions under MAT as suggested may not always be based on the form or the nomenclature it must address the substance even in respect to Explanation U/S.115JB/S.115JA(OLD) item (c) thereof regarding Provision for Bad Debts.In this regard following citation of Supreme Court is relevant where what is suggested in the answer may become untrue.
292ITR299 in the case of HCL Comnet(SC)
171Taxman13 in the case of Hewlett Packard(Delhi HC)
V.K.KALIA
Vijay Kalia
(Chartered Accountants)
(1705 Points)
Replied 12 October 2008
The additions under MAT as suggested may not always be based on the form or the nomenclature it must address the substance even in respect to Explanation U/S.115JB/S.115JA(OLD) item (c) thereof regarding Provision for Bad Debts.In this regard following citation of Supreme Court is relevant where what is suggested in the answer may become untrue.
292ITR299 in the case of HCL Comnet(SC)
171Taxman13 in the case of Hewlett Packard(Delhi HC)
V.K.KALIA
stephen
(service)
(20 Points)
Replied 22 October 2008
Can we make the warranty provision for the 3year. If iam doing how do i do it and how we should pass the entries in the books. Please let me know. for Eg Rs. 10,000/- per year provision.
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