dwitichopra (CA Job) 31 March 2015
I havent had practical exposure of working in taxation so i dont really have practical knowledge of Tax so pardon me if my queston sounds lame but i wanted to get clarity on the provisions of MAT
In case the company is enjoying 80IA (power generation)exemption (entire income generated by the company is through power generation) are MAT provisions still applicable to the income generated by the company? If so, doesnt it defeat the purpose of the exepmtion? I read a few queries based on the same line as my own query but i didnt quite get the logic behind it. Also, if MAT is payable
In case of companies to which 80IA provisions are not applicable, If tax computed on book profit (18.5%) is greater than income tax calculated and if MAT becomes payable how is it reflected in the books of account? the amount of PBT as reduced by Tax shown in the P&L a/c is the figure arrived at after deducting tax as per MAT?
Thanking you in advance.
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