Mat bcos of change in method of depreciation

I dont think that the excess profit of Rs10cr shud be considered for MAT. The change in method of deprn whihc results in escess charge does not amount to any gain to the co. the change in method of deprn is adopted for compliance purposes with relevant statues/AS etc..

Menu

CA Priyaadarshini

`Hi all,`

`A company a changed its method of depreciation from WDV to SLM. Excess depreciation is credited to the P&L. Because of this, there is profit of (say) Rs 10 cr. without this, the company would be at loss.`

`Is the company required to pay MAT on the book profit of Rs 10cr ?`

`Thanks`

`Priya`

Giridhar S Karandikar

CA Priyaadarshini

Leave a Reply

Recent Topic

Related Topics

Latest Job Openings

Senior Associate

Finance Head

Audit, Taxation & Compliance Executive

Education Content Creator

U.S. Financial Reporting & Consolidation Manager

Senior Accounts Executive

Accountant

Accounts & Tax Executive

Menu

Forum Search

Mat bcos of change in method of depreciation

Hi all,

A company a changed its method of depreciation from WDV to SLM. Excess depreciation is credited to the P&L. Because of this, there is profit of (say) Rs 10 cr. without this, the company would be at loss.

Is the company required to pay MAT on the book profit of Rs 10cr ?

Thanks

Priya