MAT - Unabsorbed Depreciation

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)

29 May 2010  


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.