Hi,
Our company is a Pvt Ltd and is EOU entitiled to Sec 10(B) benefits and have paid MAT of lets say Rs. 100 (for example) upto FY 2010-11.
In FY 2011-12 EOU tax benefits have expired and now it is under 30% tax bracket. In this scenario, Lets say our Tax liability for FY 2011-12 is say Rs. 60.
What will be our Tax treatment for FY 2011-12
A) Whether we can do full set off of Rs. 60 from the earlier MAT paid or
B) Whether our claim will be restricted and we have to pay fresh MAT @ 18% and can set off MAT Credit only on the balance Tax liability of lets say 12% (ignore surcharge & cess for this example for sake of simplicity).
If so, do we have to pay Advance Tax now??
Your earlier reply will be of great help.
Thanks
Dharmesh
CAclubindia
