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Mat provisions

Tax queries 717 views 1 replies

"sec 115jb(2)(iii) says the amount of loss brought forward or unabsorbed depreciation whichever is less as per books of a/c."

what does the above point refers??

practical situation: There is a case of a co. wherein the N/P as per the P/L is1897516  ,there is b/f unabsorbed business loss amounting to3777347 &  unabsorbed depreciation of 1455053. what & how will the mat provision  be applicable in the case, provide the solution for the case .

Also  let me know which depreciation is to be added to the book profits as per the mat provisions.(depn asper  books).HOPE I WILL GET THE SOLUTION QUICKLY

from ,

nitin

Replies (1)

Net profit                                                   18,97,516  

Less : Business loss

or unaborbed depreciation

whichever is less                                  14,55,053                      

Book profit                                               calculate it

 

I assumed figures of business loss and unaborbed depreciation is as per books of account and not as per income tax.

Since u have not mentioned anything else this can be your final figure of book profit.

Second qns : If depreication is claimed on revaluation of assets then that depreciation is added.


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