Taxation

As per Explanation 1 to Section 115JB of the I-T Act,  the amount by way of provision  of losses of subsidiary companies are required to be added back while calculating the book profit of the company.  Hence if MAT is applicable to the company because the tax liabiltiy under the normal tax provision is less than 18% of the book profit camputed u/s 115JB then the loss would not be deductible.

else it would be deductible under normal provision of the IT Act.

The section providees that the holding company should be a company registered under the companies act, 1956 whihc should be an Indian company. It doesn't matter if the subsidiary company is an Indian co or not