Dear all
i have a problem regarding the mat credit availment and presentation in financial statement ..
Suppose this year comany is first time recognising the mat and the provision of current tax is made of MAT and in such a case the Diffeernce between the normal tax and mat is to be recognised in the current year or in the year which i mat credit is avalible for set offf ...
please help and qoute the relevent text ...
Regards
sandeep
| Originally posted by :Sandeep Thakur | ||
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Dear all
Hi Sandeep
First of all you should reduce your noraml tax by the amount so the closing balance of Normal tax shows the same amount as in mat credit entitlement (through provision for tax). Then you can pass entry of taking MAT Credit entitlement . In profit & loss account shows the difference between Normal tax & MAT (which will be nil) and MAT amount will be reflect under loans & advances in Balance Sheet. |
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Please excuse..... can u explain the concept of MAT with an example.....I am a junior.......
thanks naveen for your kind response
but iam still confused in which year the diffential entry of mat and normal tax have to pass
helloo sanju
mat is minimum alternate tax which the compnay have to pay
if the compnay is showing the book profit ie profit in the books of accounts and taxable profit in income tax is nill
beacuse of previuos losses
sandeep
CAclubindia
