in case of an company if the Normal tax liability is less than the specified percentage of tax of the book profits(MAT) then the company is required to pay MAT instead of the normal tax liability. As MAT is shown as an asset because we can adjust the future tax liability against MAT, can the advance tax paid during the F.Y. will be eligible to be offset against the MAT liability. If not can we c/f the Advance tax & TDS paid to offset it against the tax liability in the subsequent year if the company is liable to pay tax under normal tax liability.
CAclubindia
