Urgent- MAT problem

618 views 2 replies

Please solve my query.

When calculating profit under section 115JB for calculating MAT how the current depreciation should be adjusted.

1. Should the depreciation charged in P&L as per Companies Act be added and then deducted.

or

2. Depreciation charged to P&L be added back and depreciation as per Income Tax Act be deducted to arrive at profit.

 

Please clarify soon!

Replies (2)

 MAT is calculated on book profit and depreciation as per companies act is charged to arrive at book profit for calculation of MAT

 

 

Add depreciation as per companies act then deduct the same depreciation after removing revaluation effect if any. Ignore depreciation as per IT act while calculating MAT


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