An investment compnay is having huge MAT credit available for A.Y. 2010-11. It wants to avail the said credit as early as possible. please suggest me various tax planning methods so that the said credit of MAT can be used to setoff against normal tax.
In other words in A.Y. 2011-12 the Tax as per normal provisions should me more than Tax as per 115JB, so that MAT credit of earlier year can be utilized.
I guess this needs analytical study of your figures. The excess of normal tax payable should be such that it covers earlier paid MAT.
You have to make some adjustments in depreciation accounting, may have to change accounting policies too.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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