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Mat bcos of change in method of depreciation

715 views 2 replies

`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`

Replies (2)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

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..