Sowmya.S.Balan (Paid Assistant) (749 Points)
24 April 2011dear friends,
one private ltd company in ay 2009-10 have to pay minimum alternate tax 30000 & it has tds of 45000 and balance 15000 is refund. but in ay 10-11 it has to pay tax under normal provisons 55570 whether it can take tax credit of mat paid in ay 2009-10 30000 & balance 25570 is only payable
SUNIL GARG
(CHARTERED ACCOUNTANT)
(175 Points)
Replied 24 April 2011
Dear Balan Ji,
Yes. You can claim the credit of MAT paid in AY 2009-10 in AY 2010-11 provided that MAT credit cannot reduce your tax liability below the tax payable under MAT in AY 2010-11.
For Example,
Suppose your Normal Tax Liability is Rs. 55,570 and your MAT Liability is Rs. 35,570
then, you cannot avail the credit of 30,000. You can avail the credit of Rs. 20,000 only.
In short, in any case your tax liability cannot be less than the tax under MAT.
Regards,
CA. Sunil Garg.
CAclubindia
