Mat credit entitlement

Tax expense A/c Dr. 3,00,000

                  To Provision for tax  A/c       2,00,000         

                   To  MAT Credit A/c               1,00,000  

Thankyou sumit for replying

But according to me, we willhave to pay Rs 3 lacs and agn get the MAT credit for same..the credit available for Rs 1 lac will stand as it is and the a/c will get debited by more Rs 3 lacs amounting to balance of Rs 4 lacs..

We wont be able to avail the credit entitlement as it is posbl only in the case when tax as per normal provisions is greater than MAT.

here the case is not so..

Our MAT Credit will inc. by Rs 3 lacs..

and since we have to route it through P/L A/c, the entry wud be followed as :

1. P/L A/C Dr. 300000

        To Prov. for Tax 300000

2.  MCE Dr. 300000

         To P/L A/C 300000

MCE op. bal= 100000

Add.= 300000

Total MCE available = 4 lacs

Ya, right, I forgot to take the credit of this year..

The Entry for teh same would be

Mat Credit A/c Dr. 3,00,000

                TO Provisions for Tax A/c         3,00,000

Yeah exactly bt combined entry cannot be shown....it shud be routed thru P/L A/C

Well, ya.....and the same should be shown as a separate line item therein P&L A/c

Dear Sir, Can you please solve my query.

Tax as per provisions = Rs.480547

MAT Liability= 308848

TDS = 498748

Will I get benefit of MAT credit