MAT - Unabsorbed Depreciation

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)

29 May 2010  

Friends

A Pvt. Ltd. Co. Which is Paying tax Under Section 115JB.

 

In That Company In Last Year 

 

Year 2009-10 - Income Book Profit  - 500000

 

- There Was Business Loss Carried Forward of Past Years Rs. - 200000

 

- Unabsorbed Depreciation Carried Forward As Per Schedule XIV of Companies Act.of Past Years - 300000

 

Then What is Computation of Tax Under MAT Provision.

 

Book Profit - 5 Lacs

Less : Business Loss - 2 Lacs

Net Book Profit - 3 Lacs

 

Then Weather Tax is To Be Paid @ 15% on 3 Lacs

 

or Weather Unabsorbed Depreciation Also Can We Set Off.

 

Actually My Question is Weather Unabsorbed Depreciation As Per Companies Act Can Be Set

Off Under MAT Book Profit or Only Business Loss is Adjusted.