I have problem in computing MAT
Whether I need to consider Cess and Surcharge while computing the MAT Credit.
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 16 March 2016
Yes, You need to consider Cess and SHEC while computing MAT Credit
Varun Sharma
(Proprietor-Sharma Varun & Co.)
(244 Points)
Replied 16 March 2016
Income Tax needs to be added back
Edu. Cess and Secondary Higher Edu. Cess are part of Income Tax, levied by Central Government.
Salman PS
(STUDENT)
(72 Points)
Replied 16 March 2016
Sir I want to know what I need to do with Surcharge
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 16 March 2016
Compute 18.5% on Book Profit + Surcharge as applicable (If book profits > One Crore) - Marginal Relief if applicable + 3% E.C and S.H.E.C
Compute normal income tax + Surcharge as applicable (If book profits > One Crore) - Marginal Relief if applicable + 3% E.C and S.H.E.C
MAT Credit u/s.115JAA = MAT u/s.115JB - Income tax payable under Normal provisions of IT Act,1961
Salman PS
(STUDENT)
(72 Points)
Replied 16 March 2016
Thank you Sir,
One of our client has got a notice u/s143(1),where we computed the MAT credit as you have posted and the dept. computed it by donot considering the cess and Surcharge,Pls Help me!!!
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