Dear All,
The MAT credit can be utilised against future tax liability - where MAT paid is in excess of Tax hunder Normal provisions. The question now is - Can the MAT credit be utilised against MAT liability. For ex: In year 1,the Company pays a MAT of Rs. 5 Lakhs since it is more than Income Tax liability -Rs.3 Lakhs under normal provisions. Can Rs. 2Lakhs being MAT credit be utilised in the subsequent year, if again MAT liability is 5lakhs and Income Tax under normal provision is Rs.3lakhs.??
Thank you,
Vinay
CAclubindia
