Dear CCI Members,
Our normal tax liability for A.Y 2016-17 is Rs. 95,097
Cess liability is Rs. 2853
Total tax liability is Rs. 97,950
Book profit is NIL so not MAT liaiblity.
We have got MAT credit of Rs. 8,94,274.
Now my question is can we utilise MAT Credit of Rs. 97,950 (ie including cess of Rs.2853) or Rs.95,097 (ie without cess)?
Please relevant section/case law/notification for my reference.
Thanks & Regards,
Arjun Rajagopal
MAT credit to be used only for income tax without cess.
https://groups.google.com/forum/#!topic/forum4ca/4Sv3FAQF1bg
Thank you sir for your reply. By reading the points given in the link mentioned above I understood MAT credit doesn't include cess. However on MAT are we not liable to pay cess and surcharge(if applicable)? Please clarify.
MAT credit to be used only for income tax without cess.
https://groups.google.com/forum/#!topic/forum4ca/4Sv3FAQF1bg
it emerges that MAT payable u/s 115JB is only income tax and does not include surcharge or education cess.
Therefore, if only income tax is paid under the provisions of section 115JB it is natural that tax credit u/s 115JAA will only be of income tax and not of surcharge and education cess.
the Tribunal ruled in favour of Revenue that the for the purpose of carry forward and set off in subsequent years, MAT shall not include surcharge and cess.
While preparing ITR6 in schedule PARTB-TI-TTI under point no.1 MAT calculation coloumn includes follows:-
a) Tax payable on deemed total income u/s 115JB
b) Surcharge on (a) above
c) EC, including SAHEC on (a+b) above
d) Total tax payable u/s 115JB
from the above, it is understood that MAT calculation includes cess and surcharge. Now Iam confused by reading the note given be you. Please clarify.
CAclubindia
